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David Lee Corporation has $40 million in debt and $50 million in equity. The interest...

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Finance

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David Lee Corporation has $40 million in debt and $50 million in equity. The interest rate on the debt is 10% and a beta is 1.35. The corporate tax rate is 35% and the market risk.premium is 5%, and the current t-bill rate is 4%. This firm is now to consider a $6.5 million investment project. Cash flow is expected to be about $550,000 per year for a fairly long period of time. Determine if this project is worthwhile to proceed

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