Alpha Industries is considering a project with an initial cost of $8.3 million. The project will produce cash inflows of $1.73 million per year for 7 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.70 percent and a cost of equity of 11.33 percent. The debt–equity ratio is .63 and the tax rate is 35 percent. What is the net present value of the project?. Please correct.

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A: GIVEN, initial investment = $9670 years = 5 after tax cashflow = $3000 r= 8%

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A:

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.