Find amount to pay for project and earn rate of return


A firm is thinking of project which will create perpetual cash flows of $50,000 per year starting next year. Project has same risk as firm's overall operations. If firm's WACC is 12.0%, and its debt-to-equity ratio is 1.33, determine the most it could pay for project and still earn its required rate of return?

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Project Management: Find amount to pay for project and earn rate of return
Reference No:- TGS033125

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