None Dyrdek Enterprises has equity with a market value of $11.9 million and the market value of debt is $4.10 million. The company is evaluating a new project thathas more risk than the firm. As a result, the company will apply a risk adjustment factor of 1.9 percent. The new project will cost $2.42 million today andprovide annual cash flows of $631,000 for the next 6 years. The company's cost of equity is 11.51 percent and the pretax cost of debt is 4.99 percent. The taxrate is 22 percent. What is the project's NPV?Multiple ChoiceО$214,620$364,140О$210,704о$527,556

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Answered: Dyrdek Enterprises has equity with a…

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter11: Capital Budgeting And Risk

Section: Chapter Questions

Problem 9P

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