Consider the following projects. Project C0 C1 C2 C3 C4 C5 A -1,000 +1,000 0 0 0 0 B -2,000 +1,000 +1,000 +4,000 +1,000 +1,000 C -3,000 +1,000 +1,000 0 +1,000 +1,000 Assume that this firm’s beta= 1.5...

Consider the following projects.

Assume that this firm’s  beta= 1.5  The expected market return is 12%.

The risk free rate is 2.5%.  This company can borrow debt at 5.2%.

 The firm has $5 billion in debt. It has 6 billion shares outstanding  at $3 price/shr.

The corporate tax rate (Tc) = 21%

Question: What is the NPV of project B ?