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Torpedo Co. is considering a new project generating an annual cash revenue of $500,000 in...

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Accounting

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Torpedo Co. is considering a new project generating an annual cash revenue of $500,000 in perpetuity. Annual costs are 70 percent of the cash revenue. The initial cost of the investment is $685,000. The tax rate is 34 percent and the unlevered cost of equity is 14.2 percent. The firm is financing $400,000 of the project cost with debt. What is the adjusted present value of the project? $80,183.10 $182,183.10 $114,183.10 $148,183.10

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