Abc co is analyzing a project with an initial cost of


ABC co. is analyzing a project with an initial cost of $110,000 and cash inflows of $63,000 in year 1 and $74,000 in year 2. This project is an extension of the firms current cooperation’s and thus is equally as risky as the current firm. The firm uses only debt and common stock to finance its operations and maintains a debt-equity ratio is 12.7%, tax rate is 35%. What is the projected net present value of this project?

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Financial Management: Abc co is analyzing a project with an initial cost of
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