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Business, 28.11.2019 04:31 kittylover613

Carson electronics uses 58 percent common stock and 42 percent debt to finance its operations. the aftertax cost of debt is 5.4 percent and the cost of equity is 15.3 percent. management is considering a project that will produce a cash inflow of $49,600 in the first year. the cash inflows will then grow at 2.5 percent per year forever. what is the maximum amount the firm can initially invest in this project to avoid a negative net present value for the project?

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