Tomsplus co has an estimated wacc of 725 and a corporate, Ask an Expert

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TomsPlus Co. has an estimated WACC of 7.25% and a corporate tax rate of 30%. The CFO is considering a project that costs $100 million today, and generates a positive $20 million each year for the next 7 years. The CFO has also come to the realization that this project is riskier than average, and he estimates the risk premium to be 2%, which needs to be added to the discount rate. Calculate the NPV of the project. (Round to two decimals)

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92391030

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