What is the projects npv, Floatation cost for debt is 4%

What is the projects npv

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Reference no: EM13255937

PC Inc. currently has a target D/E ratio of 0.80. It's considering a new $51 million manufacturing facility which will generate after-tax cash flows of $16.2 million in the next 5 years. The firm's current WACC is 12%. Floatation cost for debt is 4% and 8% for equity. What is the project's NPV before and after adjusting for floatation cost?

Reference no: EM13255937

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