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Business, 31.07.2020 01:01 alanisalvarez2000

Harvard Castor Inc.'s debt-to-value ratio is currently at 40%. The firm has 14% cost of equity and 5.5% after-tax cost of debt. Recently, Harvard Castor's CEO has a project of launching a new product; the project will help to produce cash flows of $398,000 next year (Year 1) and $211,000 in Year 2. If this project is about as risky as the firm's existing assets, what is the present value of the project

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Harvard Castor Inc.'s debt-to-value ratio is currently at 40%. The firm has 14% cost of equity and 5...
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