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A company pursues a cost-cutting initiative that costs $31,000 to implement. Thereafter, however, the initiative reduces
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- A Company Pursues A Cost Cutting Initiative That Costs 31 000 To Implement Thereafter However The Initiative Reduces 1 (50.11 KiB) Viewed 15 times
A
company pursues a cost-cutting initiative that costs $31,000 to implement. Thereafter, however, the initiative reduces after-tax costs by $7,000 per year perpetually. The
company relies on 53% debt financing at a 11.0% pretax interest rate. The
company marginal tax rate is 28%. The
company ß is 1.33, short-term risk- free rate is 7.6%, and required risk premium for the market portfolio is 11.5%. Find the project's net present value. O$13,055 O$11,868 $10,790 $15,797 $14,361