Help needed – Thanks in advanceSuppose you have a project with a projected annual cash flow
Help needed – Thanks in advance Suppose you have a project with a projected annual cash flow before interest and taxes of $6 million, indefinitely. The initial investment of $18 million will be financed with 60% equity and 40% debt. Your tax rate is 34%, your cost of capital if you were an all-equity firm is 24%, and your usual borrowing rate is 10%. Your project […]