Problema comp is considering a capital expansion project, Ask an Expert

Finance

Problem:

A comp is considering a capital expansion project. The initial investment is $55000. The life of this project is 4 years. The net operating cash flows are each 14800, 13300, 15936 and 32,500.64 The company has a cost of capital of 22% The after tax cost of debt is 7% the cost of equity is 32%.

Required:

What is the Net present value.

Note: Please explain comprehensively and give step by step solution.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148344

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