Question: ABC borrows $ 1 3 , 3 8 7 at a subsidized rate of 3 . 1 % to invest in a project. The project

ABC borrows $13,387 at a subsidized rate of 3.1% to invest in a project. The
project lasts for 13 years and ABC repays the loan at the end of the project. If
ABC's cost of debt is 7.3% and the tax rate is 33%, calculate the NPV of this
loan financing.
ABC borrows $13,387 at a subsidized rate of 3.1% to invest

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