Waterdeep Adventure Travel has an unlevered cost of equity of 18.8%, and a cost of...
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Waterdeep Adventure Travel has an unlevered cost of equity of 18.8%, and a cost of debt of 6.1%. Their tax rate is 36%, and they maintain a capital structure of 52% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $53,584, and would bring in $22,809 one year from today, and $88,237 two years from today. What is the NPV of this project, using the WACC method, if they invest today?
Please give your answer to the nearest dollar.
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