You are given the following data for a project that is to be evaluated using the APV method.YearEBITCAPEX0O $201.765O $193,822O $185,617O $222,872O $213,9181$127.000$60,0002DepreciationIncrease in NWCYear-end net debt $80,000Cost of net debt = 8%Unlevered cost of capital = 11.8%Corporate tax rate = 30%Calculate the total value of the project at t = 0. using the APV method.$72,000$50,000$100,000$133,000$40,000$80,000$60,000$140,0003$138.500$10,000$84,000$30,000$140,000

Unlevered cost of capital is 11.8% Cost of debt is 8% To Find: Value of Project at t=0 using APV…

You are given the following data for a project that is to be evaluated using the APV method. 1 Year EBIT CAPEX Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% $127.000 $60,000 $72,000 $50,000 $100,000 2 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000

You are given the following data for a project that is to be evaluated using the APV method. 1 Year EBIT CAPEX Depreciation Increase in NWC Year-end net debt $80,000 Cost of net debt = 8% $127.000 $60,000 $72,000 $50,000 $100,000 2 $133,000 $40,000 $80,000 $60,000 $140,000 3 $138.500 $10,000 $84,000 $30,000 $140,000

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter11: The Cost Of Capital

Section: Chapter Questions

Problem 19PROB

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