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    ioachidi_e's Avatar
    ioachidi_e Posts: 1, Reputation: 1
    New Member
     
    #1

    Jun 27, 2007, 12:20 AM
    Need to find NPV
    Returns on the market and Takeda Company’s stock during the last 3 years are shown below:

    Year Market Takeda
    1 -12% -14%
    2 23 31
    3 16 10

    The risk-free rate is 7 percent, and the required return on the market is 12 percent. Takeda is considering a project whose market beta was found by adding 0.2 to the company’s overall corporate beta. Takeda finances only with equity, all of which comes from retained earnings. The project has a cost of $100 million, and it is expected to provide cash flows of $20 million per year at the end of Years 1 through 5 and then $30 million per year at the end of Years 6 through 10. What is the project’s NPV
    Curlyben's Avatar
    Curlyben Posts: 18,514, Reputation: 1860
    BossMan
     
    #2

    Jun 27, 2007, 12:21 AM
    Please refer to THIS ANNOUNCEMENT

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