Moody industrial supply is considering a perpetual project


Moody Industrial Supply is considering a perpetual project that will produce annual cash revenues of $382,000. The annual cash costs are $313,000 and the initial investment is $350,000. The firm is an all-equity firm with a tax rate of 35 percent and an unlevered cost of capital of 12.5 percent. What is the net present value of this project to Moody Industrial Supply?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Moody industrial supply is considering a perpetual project
Reference No:- TGS01567509

Expected delivery within 24 Hours