Kouingers Kamo Supplies is considering an investment in new manufacturing equioment. The equipment costs $220,000 and wi
Posted: Sun Apr 17, 2022 6:56 pm
Kouingers Kamo Supplies is considering an investment in new manufacturing equioment. The equipment costs $220,000 and will provide annust after tax rows of $50.000 at the end of each of the next seven years. The firm's market value debt equity ratio is 25% its cost of culty and its pretox cost of de 7%. The flotation costs of you and equnywe and 9%, respectively. The firm's combined marginal federal and provincial tax rate 40%. Assume the projects of approximately the same riik as the firm's exciting operation After considering flotation costs, wat is the NPV of the proposed project? Muito Choco -$9.261 -5709 -S013 5222