Question: i need an explanation and answer to this finance problem. A firm has projocted the following financials for a possible project: The firm has a
A firm has projocted the following financials for a possible project: The firm has a capital structure of 37.00% debt and 63.00% equity. The cost of debt is 8.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 34.00%. (Assume that you can't recover the final NWC position in year 5, i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint Be careful about rounding the WACC here? Answer Format: Currency: Pound to: 2 decimal places
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