Problem:
You are evaluating a project that cost 60000 at year 0 and generates after tax cash flows of 20000 for year1 through year 3. the cost of equity for your firm is 10%. the firm has debt outstanding with an 8% coupon rate and a yield to matruity of 5%. The tax rate is 40%. The capital structure weights based on market values are 80% for equity and 20% for debt.
Required:
Question: What is the NPV for the project?
Note: Please provide through step by step calculations.