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The Azzon Oil Company is considering a project that will cost $50 million and have a year-end after-tax cost savings of $7 million in perpetuity. Azzon's before tax cost of debt is 10% and its cost of equity is 16%. The project has risk similar to that of the operation of the firm,and the target debt-equity ratio is 1.5. What is the NPV for the project if the tax rate is 34%?
Delta
A landform created by the deposition of sediment carried by a river as the flow leaves its mouth and enters slower-moving or stagnant water.
River Terraces
Flat, bench-like surfaces adjacent to the course of a river, which indicate previous river levels and can be used to reconstruct past environmental changes.
River Terraces
Stepped, flat surfaces alongside river valleys that represent previous levels of the river bed, formed by river erosion and changes in water level.
Nile River
The longest river in Africa, flowing north through northeastern Africa to drain into the Mediterranean Sea.
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