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What is the npv of the project

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LBC is considering a new project. The cost of the project is $1,234,204 and is expected to earn after-tax profits of $118,631 per year forever. LBC has a total value of $59 million and has outstanding debt of $36 million. LBC's tax rate is 31%. What is the NPV of the project if LBC has cost of debt of 6.2% and cost equity of 10.4%?

Reference no: EM133005060

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