Beta of project is to financed entirely with common equity

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Reference no: EM13937316

An investment project will have an initial, after-tax cash outlay of $50,000 an after-tax cash inflows of $7,190 per year for 10 years. In addition, it will have an after-tax salvage value of $10,000 at the end of Year 10. The risk-free rate is 6%, the expected market return is 10%, and the beta of the project is to be financed entirely with common equity, its NPV is:

a. +$13,210

b. +$4,905

c. +$210

d. -$6,155

e. -$12,879

Reference no: EM13937316

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