Question: Im having a problem in solving those this question. can someone please explain it to me. Waterdeep Adventure Travel has an unlevered cost of equity
Im having a problem in solving those this question. can someone please explain it to me.
Waterdeep Adventure Travel has an unlevered cost of equity of 16.7%, and a cost of debt of 6.8%. Their tax rate is 42%, and they maintain a capital structure of 57% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $79,504, and would bring in $20,732 one year from today, and $81,870 two years from today. What is the NPV of this project, using the WACC method, if they invest today?
Please give your answer to the nearest dollar.
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
