A firms investments cost $80000 and are expected to return $97000 before taxes at the end of
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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)?
Related Book For
Fundamentals of Financial Management
ISBN: 978-0324272055
10th edition
Authors: Eugene F. Brigham, Joel F. Houston
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