Generate unlevered cash flow

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A project can generate unlevered cash flow of $4 million per year in perpetuity. Suppose the firm considering this project finances its operations with an equal mix of debt and equity. The required return on debt is 5%, and the required return on equity is 15%. The marginal corporate tax rate is 30%. What is the project's NPV if the initial outlay is $19 million? Round your answer to one decimal place.

Reference no: EM13953784

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