Question: Question 25 (5 points) Caterpillar (CAT) has debt valued at $40 billion on its balance sheet, while the market value of its common stock is

Question 25 (5 points) Caterpillar (CAT) has debt valued at $40 billion on its balance sheet, while the market value of its common stock is roughly $20 bililion. The yield to maturity on the debt is 5.50%, the cost of equity for the firm is 9 . and the tax rate for the firm is 35%. Caterpillar (CAT) has a project with the followina cash flows fin millions): Given this information, what is the NPV for the proposed project? $3.41 million $1.22 million $0.23 million $1.29 million $2.18 million

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