A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash ﬂows are estimated at $60,000 for year 1, $120,000 for year 2, and $135,000 for year 3. The ﬁrm
Has a target debt/equity ratio of 1.2. The ﬁrm's cost of equity is 14% and its cost of debt is 9%. The
Tax rate is 34%. What is the NPV of this project?

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The Answer of A proposed project lasts three years and has an initial investment of $200,000. The after-tax cash ﬂows are estimated at $60,000 for year 1, $120,000 for year 2, and $135,000 for year 3. The ﬁrm
Has a target debt/equity ratio of 1.2. The ﬁrm's cost of equity is 14% and its cost of debt is 9%. The
Tax rate is 34%. What is the NPV of this project?

A Proposed Project Lasts Three Years and Has an Initial