Roger has a levered cost of equity of 0.18. He is thinking of investing in...
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Roger has a levered cost of equity of 0.18. He is thinking of investing in a project with upfront costs of $8 million, which pays $3 million per year for the next 8 years. He is going to borrow $2 million to offset the startup costs at a rate of 0.03. His tax rate is 0.3. He will repay this loan at the end of the project. What is the NPV of this project, using the FTE method?
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