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Waterdeep Adventure Travel has an unlevered cost of equity of 16.2%, and a cost of debt of 6.0%. Their tax rate is 23%, and they maintain a capital structure of 61% debt and the rest equity. They are considering giving cave exploration tours to their menu of adventure vacations. Buying the needed equipment would cost $78,278, and would bring in $34,162 one year from today, and $83,221 two years from today. What is the NPV of this project, using the WACC method, if they invest today?

Please give your answer to the nearest dollar.



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Subject: Business, Finance

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