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A project will cost $1200 at time 0, and is expected to prod

Thesis Help Finance A project will cost $1200 at time 0, and is expected to prod

Finance

A project will cost $1200 at time 0, and is expected to prod

A project will cost $1200 at time 0, and is expected to produce $1300 at time 1, and no other cashfl… Show more A project will cost $1200 at time 0, and is expected to produce $1300 at time 1, and no other cashflows. If the firm uses all equity, the cost of capital is 10%. The firm is considering using $600 debt at 8% and $600 equity at 12% to finance the project. The tax rate is 40%. a) What is the WACC? What is the NPV using WACC? b) What is the APV, including the tax shield? • Show less

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