What is the npv of the project

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Green Vegan Inc. is evaluating a proposed project that requires an initial outlay of $1,214,000. It is estimated that the after-tax cash inflows from the project will be $237,000 in perpetuity. The company is financed 46% with debt and the remainder is in equity. The firm's cost of equity is 17.50%, its pre-tax cost of debt is 5.50% and its tax rate is 35%. What is the NPV of the project if it is of similar risk as the firm's existing operations?

Reference no: EM133111617

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