Use the following information to answer the question(s) below. Taggart Transcontinental is considering a $250...
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Use the following information to answer the question(s) below. Taggart Transcontinental is considering a $250 million investment to launch a new rail line. The project is expected to generate a free cash flow of $32 million per year, and its unlevered cost of capital is 8%. Taggart's corporate tax rate is 21%. Taggert has 4 million shares of stock outstanding. Assuming that to fund the investment Taggart will take on $250 million in permanent debt and ignoring issuance costs, the NPV of Taggart's new rail line is closest to: A. $195 million. B. $203 million. C. $243 million. D. $235 million
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