Question: how do I calculate the PV 6) TYP has a target D/E ratio of 25%. The flotation costs for equity is 6% and the flotation

how do I calculate the PV
how do I calculate the PV 6) TYP has a target D/E

6) TYP has a target D/E ratio of 25%. The flotation costs for equity is 6% and the flotation cost for debt is 4%. TYP is considering a project that will cost $2.8 million. The project will generate after-tax cash flows of $750,000 per year for 6 years. The WACC is 15%. a) What is the NPV of the project without adjusting for flotation costs? (3 marks) N=6,I=15%,PMT=750000,FV=0,PV=$2,838,362.02 NPV of the project =$2,838,362.02$2,800,000=$38,362.02

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!