Question 5 Limperback is about to start a new project, for this reason the company needs to raise $10,000,000. The company has a constant debt-to-value ratio policy of 30%. Assume that the company is willing to fund 70% of the project by raising equity, and the rest through debt. In order to raise new funds, the company uses an investment bank that charges a 5% spread for raising equity and no spread for debt. The project will return a perpetual unlevered, after-tax cash flow of $830,000. The WACC of the company is 9.51%. What is the NPV of the new project? (a) -$1,640,766 (b) -$454,251 (c) $20,027 (d) $ 148,195 (e) I choose not to answer. Question 5 Limperback is about to start a new project, for this reason the company needs to raise $10,000,000. The company has a constant debt-to-value ratio policy of 30%. Assume that the company is willing to fund 70% of the project by raising equity, and the rest through debt. In order to raise new funds, the company uses an investment bank that charges a 5% spread for raising equity and no spread for debt. The project will return a perpetual unlevered, after-tax cash flow of $830,000. The WACC of the company is 9.51%. What is the NPV of the new project? (a) -$1,640,766 (b) -$454,251 (c) $20,027 (d) $ 148,195 (e) I choose not to