What is the NPV of the project

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Question - The NuPress Valet Co. has an improved version of its hotel stand. The investment cost is expected to be 30 million dollars and will return 13.50 million dollars per year for 5 years in after-tax net cash flows (CFFAs). The ratio of debt to equity is 1 to 1. The cost of equity is 13%, the pre-tax cost of debt is 9%, and the tax rate is 34%. What is the NPV of the project?

Reference no: EM132796369

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