A project costs $15 million and is expected to produce cash flows of $3 million a year for
10 years. The opportunity cost of capital is 14%. If the firm has to issue stock to undertake the project and issue costs are $500,000, what is the project's APV (approximately)?
A) -$352,000
B) $148,350
C) $648,350
D) $952,000

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The Answer of A project costs $15 million and is expected to produce cash flows of $3 million a year for
10 years. The opportunity cost of capital is 14%. If the firm has to issue stock to undertake the project and issue costs are $500,000, what is the project's APV (approximately)?
A) -$352,000
B) $148,350
C) $648,350
D) $952,000

A Project Costs $15 Million and Is Expected to Produce