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 billion. The yield to maturity on the debt is 5.50%, the cost of equily for the firm is 12%, and the tax rate for the firm is 35%. Caterpillar (CAT) has a project with the following cash flows (in millions): Given this information, what is the NPV for the proposed project? -\$1.29 million $1.76 million $2.18 million $0.75 million Page 25 of 29

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