Question: Firm has $2,000 debt due, a potential project costs $500. Ihe PV of the potentlal cashtlows with and without the project is listed below. However,
Firm has $2,000 debt due, a potential project costs $500. Ihe PV of the potentlal cashtlows with and without the project is listed below. However, the project must be financed by equity. Boom and Recession occurs with 50% chance respectively. What is the NPV of this project? Will the management (shareholders) accept to fund this project? Why
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