Question: ing Enabled: Quiz 4 G Saved Help Save & Exit Submit million per Alpha Industries is considering a project with an initial cost of
ing Enabled: Quiz 4 G Saved Help Save & Exit Submit million per Alpha Industries is considering a project with an initial cost of $8.9 million. The project will produce cash inflows of $1.57 year for 9 years. The project has the same risk as the firm. The firm has a pretax cost debt of 5.88 percent and a cost of equity of of 11.45 percent. The debt-equity ratio is .69 and the tax rate is 35 percent. What is the net present value of the project?
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