Dyrdek Enterprises Has Equity With A Market Value Of 12 7 Million And The Market Value Of Debt Is 4 50 Million The Co 1 (32.52 KiB) Viewed 62 times
Dyrdek Enterprises Has Equity With A Market Value Of 12 7 Million And The Market Value Of Debt Is 4 50 Million The Co 2 (32.52 KiB) Viewed 62 times
Dyrdek Enterprises has equity with a market value of $12.7 million and the market value of debt is $4,50 million. The company is evaluating a new project that has more risk than the firm. As a result, the company will apply a risk adjustment factor of 2.2 percent. The new project will cost $2.58 million today and provide annual cash flows of $671,000 for the next 6 years. The company's cost of equity is 11 83 percent and the pretax cost of debt is 5.07 percent. The tax rate is 21 percent. What is the project's NPV? Multiple Choice O O $158,451 $377207 $579,510 $100,006 $102,000
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