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Walker, Inc., is an all-equity firm. The cost of the company’s equity is currently 11.6 percent...

Walker, Inc., is an all-equity firm. The cost of the company’s equity is currently 11.6 percent and the risk-free rate is 4.5 percent. The company is currently considering a project that will cost $11.97 million and last six years. The company uses straight-line depreciation. The project will generate revenues minus expenses each year in the amount of $3.57 million.

  

If the company has a tax rate of 24 percent, what is the net present value of the project?

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jeff jeffy answered 2 years ago
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