Tropical Sweets is considering a project that will cost $70 million and will generate expected cash flows of $30 million per year for three years.
Tropical Sweets is considering a project that will cost $70 million and will generate expected cash flows of $30 million per year for three years. The cost of capital for this type of project is 10 percent and the risk-free rate is 6 percent. After discussions with the marketing department, you learn that there is a 30 percent