Use the information for the question(s)below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital Omicron Industries' New Project Free Cash Flows (Millions) Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-The NPV for Omicron's new project is closest to:
A)$23.75 million.
B)$27.50 million.
C)$28.75 million.
D)$24.75 million.

Question

Use the information for the question(s)below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital  Omicron Industries' New Project Free Cash Flows (Millions)  Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-The NPV for Omicron's new project is closest to:
A)$23.75 million. 
B)$27.50 million. 
C)$28.75 million. 
D)$24.75 million.

Quizplus · Accepted Answer

The Answer of Use the information for the question(s)below.
Omicron Industries' Market Value Balance Sheet ($ Millions)
and Cost of Capital  Omicron Industries' New Project Free Cash Flows (Millions)  Assume that this new project is of average risk for Omicron and that the firm wants to hold constant its debt to equity ratio.
-The NPV for Omicron's new project is closest to:
A)$23.75 million. 
B)$27.50 million. 
C)$28.75 million. 
D)$24.75 million.

Use the Information for the Question(s)below