Solution-Npv of the project-walker inc

Npv of the project-walker inc

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Reference no: EM133062702

Walker, Inc., is an all-equity firm. The cost of the company's equity is currently 10.66% and the risk-free rate is 2.6%. The company is currently considering a machinery for a project that will cost $15.39 and last 5 years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $2.8. If the company has a tax rate of 33%, What is the NPV of the project?

NOTE: Depreciation should be discounted using the Risk-Free Rate (think about why!)

Reference no: EM133062702

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Npv of the project-walker inc

Reference no: EM133062702

Reference no: EM133062702

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