Question: Consider the following projects: Cash Flows ($) Project C 0 C 1 C 2 C 3 C 4 C 5. C6 A 1,000 1,000 0

Consider the following projects:

Cash Flows ($)
Project C0 C1 C2 C3 C4 C5. C6
A 1,000 1,000 0 0 0 0. 0
B 2,000 1,000 1,000 4,000 1,000 1,000. 1,000
C 3,000 1,000 1,000 0 1,000 1,000. 5,000

assume that this firms beta = 2 the expected market return is 6%.

the. risk free rate is 3.5%. the company can borrow debt at 8%

the firm has $5 billion in debt and $10 billion in equity

the corporate tax rate = 21%

What is the NPV of project C?

A - 3,408.6

B - 3,461.2

C - 3,377.1

D - 3,555.0

E - 3,422.5

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