The London Corporation is considering a project that will cost $310,000 and will generate after-tax cash flows

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The London Corporation is considering a project that will cost $310,000 and will generate after-tax cash flows of $96,000 per year for 5 years. The firm's WACC is 12% and the target D/E ratio is 2/3. The flotation cost for debt is 4% and the flotation cost for equity 8%. What would be the new cost of the project after adjusting for flotation costs?

Posted Date: May 18, 2024 03:00 AM

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The London Corporation is considering a project that will cost $310,000 and will generate after-tax cash flows

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