Determined to be equal to their wacc instead

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XYZ Company has sales of $4,800,000, COGS is 40% of sales, operating expenses are $2,100,000, interest expense $20,000 and depreciation 30,000. Tax rate 40%. Construct their income statement and answer the below. They have a 50-50 target capital structure of debt/equity. Their stated bank loan rate is 6% and rs = 12%. WACC is 7.8%.

If the cost of capital for this project is determined to be equal to their WACC (reference question #5) instead, what is the NPV?

Reference no: EM132039171

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