Question: Mullen group is considering adding another division that requires a cash outlay of $30,000 and is expected to generate $7890 in after tax cash flows
Mullen group is considering adding another division that requires a cash outlay of $30,000 and is expected to generate $7890 in after tax cash flows each year for the next five years. the companys target capital structure is 40% debt, 15% preferred, and 45% common equity. the after tax cost of debt is 6% the cost of preferred is 7% and the cost of retained earnings is 12 %. the firm will not be issuing any new stock. what is the npv of this project
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