You want to find the NPV of a two-period (two-year) project. The free cash flow (FCF) for the initial period (year 0) is -$100,000, for year 1 it is $50,000, while for the second year it is $80,000. It is financed 60% through a bank loan (which lasts two years) and 40% through the issuance of shares.The interest rate of the loan (for $100,000) is 2% bimonthly overdue.The interest rate of the loan (for $100,000) is 2%, due bimonthly. The tax rate is 35%. For the equity issue, the risk-free rate is estimated to be 3% overdue trimester, and the expected market rate of return is 5% overdue trimester, and the beta to be used for the project is 1.2. The NPV of this project is: For the issuance of shares, the risk-free rate is estimated to be 3% Quarterly Past Due, and the expected market rate of return is 5% Quarterly Past Due, and the beta to be used for the project is 1.2. The NPV of this
You want to find the
The
For the issuance of shares, the risk-free rate is estimated to be 3% Quarterly Past Due, and the expected market rate of return is 5% Quarterly Past Due, and the beta to be used for the project is 1.2. The NPV of this project is:
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