What is the net present value of the project

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Reference no: EM132556861

Beta Industries is evaluating a project with an upfront investment of $9 million. The project will produce cash inflows of $1.6 million per year for 9 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 6 percent and a cost of equity of 11.5 percent. The debt-equity ratio is 0.7 and the tax rate is 30 percent. What is the net present value of the project?

Reference no: EM132556861

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