I have a Finance question. Photochronograph Corporation (PC) manufactures time series photographic equipment. It is currently at its target debt-equity ratio of .64. It’s considering building a new $71.9 million manufacturing facility. This new plant is expected to generate aftertax cash flows of $7.94 million in perpetuity. There are three financing options:
If the tax rate is 40 percent, what is the NPV of the new plant?
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