A project has the following cash flows: CF_0=-6m; CF_1=CF_2 =CF_3=CF_4 =2.5m. Tax rate = 20%,...
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A project has the following cash flows: CF_0=-6m; CF_1=CF_2 =CF_3=CF_4 =2.5m. Tax rate = 20%, r_U=10%, r_D=8%, D/E ratio =1. What is the r_L in %?
A. 11.58
B. 11.50
C. 11.00
D. 11.60
A project has the following cash flows: CF_0=-6m; CF_1=CF_2 =CF_3=CF_4 =2.5m. Tax rate = 20%, r_U=10%, r_D=8%, D/E ratio =1. What is the initial unlevered cash flow in $ million?
A. -4
B. -3
C. -6
D. 0
A project has the following cash flows: CF_0=-6m; CF_1=CF_2 =CF_3=CF_4 =2.5m. Tax rate = 20%, r_U=10%, r_D=8%, D/E ratio =1. What is the NPV in $ million?
A. 1.724
B. 1.742
C. 1.568
D. 1.658
A project has the following cash flows: CF_0=-6m; CF_1=CF_2 =CF_3=CF_4 =2.5m. Tax rate = 20%, r_U=10%, r_D=8%, D/E ratio =1. What is the APV (adjusted present value) in $ million?
A. 1.0
B. 1.2
C. 1.1
D. .9
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