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Project and still earn its required rate of return

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Tri-Global is evaluating a project that will generate perpetual cash flows of $60,000 per year beginning next year. The project has the same risk as the firm's overall operations. If the firm's WACC is 12.0%, its debt-to-equity ratio is 1.33, and its return on equityis 19%. What is the most it could pay for the project and still earn its required rate of return?

Reference no: EM132466966

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