Suppose a firm currently has an unleveraged required return of 10% and perpetual unleveraged after-tax

Suppose a firm currently has an unleveraged required return of 10% and perpetual unleveraged after-tax income of $140,301 per year. The firm has come up with an investment opportunity that would alter the firm’s asset makeup so that it would increase its perpetual unleveraged after-tax income to $170,650 per year. Because the new asset mix is riskier, the firm’s unleveraged required return would also increase to 12.165%. Based on the NPV analysis (show work/calculations), should the firm undertake this investment opportunity? SOLUTION