Equity firm analyzing a potential project


Question:

An all equity firm is analyzing a potential project which will require an initial aftertax cash outlay of 50K and after tax cash inflows of 6K per year for 10 years. In addition, this project will have an after tax salvage value of 10K at the end of Year 10. If the risk free rte is 6 % the return on an averge stock is 10 % and the beta of this project is 1.50, then what is the project's NPV?

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