Question: no excel work 6 (RWJ Essentials 5ed Ch12 Problem25) [WACC and NPV] A company has a project available that will provide after-tax cash flow of
no excel work
6 (RWJ Essentials 5ed Ch12 Problem25) [WACC and NPV] A company has a project available that will provide after-tax cash flow of $320,000 for the next six year. The project has more risk than the company, so the president has told you to use an adjustment factor of +2% in your calculations. The company uses 65% equity and 35% debt in its capital structure. The cost of equity is 11.8%, and the aftertax cost of debt is 7.2%. What is the most the company can afford to pay for the new project
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