Your company is considering an investment in a project whichwould require an ini

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Your company is considering an investment in a project whichwould require an initial outlay of $300000 and produce expectedcash flows in Years 1 through 5 of $87385 per year. You havedetermined that the current after-tax cost of the firms capital(required rate of return) for each source of financing is asfollows:Cost of debt 8%Cost of preferred stock 12%Cost of common stock 16%Long-term debt currently makes up 20% of the capital structurepreferred stock 10% and common stock 70%. What is the net presentvalue of this project?A. $1568 B. $463 C. $1241D. $871

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