A proposed project lasts 3 years and has an initial


A proposed project lasts 3 years and has an initial investment of $200,000. The after-tax cash flows are estimated at $60,000 for year 1, $120,000 for year 2, and $135,000 for year 3. The firm has a target debt ratio of 55%. The firm's cost of equity is 14% and its cost of debt is 9%. The tax rate is 34%. What is the NPV of this project?

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Financial Management: A proposed project lasts 3 years and has an initial
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