A firms investments cost $80000 and are expected to return $97000 before taxes at the end of

A firmʹs investments cost $80000 and are expected to return $97000 before taxes at the end of 1 year. The firm is financed with $50000 debt at an expected rate of 6%. The firm pays taxes at the marginal rate of 35%, and the appropriate cost of capital is 8%. What is the firmʹs adjusted present value (APV)?

Answer rating: 100% (QA)

ANS WER The firm s AP V is 10 257 WORK ING P V of infl ows 97 000 1 8 ... View the full answer