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What is the net present value of the project

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A company is considering a project with an initial cost of $8.4 million. The project will produce cash inflows of $1.9 million per year for 6 years. The project has the same risk as to the firm. The firm has a pretax cost of debt of 5.68% and a cost of equity of 10.5%. The debt-equity ratio is 0.63 and the tax rate is 24%. What is the net present value of the project?

Reference no: EM133001154

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