Rearden Metal is evaluating a project that requires an investment of $150 million today and provides a single cash flow of
$180 million for sure one year from now. Rearden decides to use 100% debt financing for this investment. The risk-free
rate is 5% and Rearden’s corporate tax rate is 40%. Assume that the investment is fully depreciated at the end of the year.
16) The NPV of this project using the APV method is closest to:
17) The WACC for this project is closest to:
18) The NPV of this project using the WACC method is closest to:
