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What is the project npv after incorporating flotation costs

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Your company is considering a project that will cost $4 million. The project will generate after-tax cash flows of $900,000 per year for 8 years. The firm's WACC is 15% and the firm's target D/E ratio is 1.3. The flotation cost for equity is 5% and the flotation cost for debt is 3%. What is the NPV for the project after adjusting for flotation costs?

Problem 1: What is the project's NPV, after incorporating flotation costs?

Reference no: EM132964554

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