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# Consider a project of the Cornell Haul Moving Company, the timing and size of the incremental aftertax cash flows (for an allequity firm) are shown

ch18#14. pls see attached. I need the answer tonight, if unable to do pls inform

Consider a project of the Cornell Haul Moving Company, the timing and size of the incremental after-tax cash flows (for an  all-equity firm) are shown below in millions:     The firm's tax rate is 34%; the firm's bonds trade with a yield to maturity of 8%; the current and target debt-equity ratio is 2; if  the firm were financed entirely with equity, the required return would be 10%   Using the APV method, what is the value of the debt side effects? Feed back I was provided: CF0 = 660,000,000; CF1 = -34,848,000 = .08 × \$660,000,000 × (1 - .34); F01 = 3 CF2 =  -\$694,848,000 = -\$660,000,000 - .08 × \$660,000,000 × .66; Use I = 8% Ans: \$59,459,301.03 Can you pls show all work and steps as I don’t have a financial?

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