A project costs $7 million and is expected to produce cash flows of $2 million per year for 10 years.The opportunity cost of capital is 16%.If the firm has to issue stock to undertake the project and issue costs are $0.5 million,what is the project's APV?

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The Answer of A project costs $7 million and is expected to produce cash flows of $2 million per year for 10 years.The opportunity cost of capital is 16%.If the firm has to issue stock to undertake the project and issue costs are $0.5 million,what is the project's APV?

A Project Costs $7 Million and Is Expected to Produce