Peter jones has owned all 100 shares of trenton corporation stock for the past five years. this year, mary smith contributes property with a $50,000 basis and an $80,000 fmv for 80 newly issued trenton shares. at the same time, peter contributes $15,000 in cash for 15 newly issued trenton shares. what tax issues regarding the exchanges should mary and peter consider?

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?