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What is the projected net present value of project

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Algoma Incorporated has a capital structure which is based on 25 % debt, 15 % preferred stock, and 60 % common stock. The after-tax cost of debt is 7 %, the cost of preferred is 8 %, and the cost of common stock is 10%. The company is considering a project that is equally as risky as the overall firm. This project has initial costs of $140,000 and cash inflows of $90,000 a year for two years. What is the projected net present value of this project?

Reference no: EM133205500

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