$(2)$

Question $1$

$3pts$

Consider a firm with the following parameters:

Physical Lifespan

$4$ years

Capital Expense, Year $0,$$$9,000$

EBITDA $/$ Year $$6,000$

Overall Firm Cost of Capital $7\mathrm{.}4\%$

Tax Rate $33\%$

Loan $$20,000$

Interest Payments $$563$

Depreciation Project Life $6$ years

What is the total PV of this firm, including the Loan

Answer Rounded to four decimal places

I