The companies with operations comparable to this project


Domain Industries has a new project available that requires an initial investment of $4.3 million. The project will provide unlevered cash flows of $710,000 per year for the next 20 years. The company will finance the project with a debt-to-value ratio of .40. The company's bonds have a YTM of 6.8 percent. The companies with operations comparable to this project have unlevered betas of 1.15, 1.08, 1.30, 1.25. The risk-free rate is 3.8 percent, and h market risk premium is 7 percent. The company has a tax rate of 34 percent. What is the NPV of this project?

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Financial Management: The companies with operations comparable to this project
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