Question: show work for all 2. WACC Example You are evaluating a new project. The project requires and initial outlay of $100 million and you forecast

show work for all 2. WACC Example You are evaluating a

show work for all

2. WACC Example You are evaluating a new project. The project requires and initial outlay of $100 million and you forecast before tax profits on $25 million in perpetuity. The marginal tax rate is 40%, the project has a target D/E of 0.25 , the interest rate on the projects debt is 7% and the cost of equity is 12%. What is the NPV of the new project

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