An Indian firm finds that by investing in a project is East Africa, its borrowing capacity will

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An Indian firm finds that by investing in a project is East Africa, its borrowing capacity will go up by

Rs.70 million. If the firm's borrowing rate in India is 16% and the risk-free rate of interest is 5%, what

is the amount of tax shield due to increased borrowing capacity? (Assume that the tax rate applicable is

40% in India and the life of the project is 5 years)?

Posted Date: May 18, 2024 01:20 PM

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An Indian firm finds that by investing in a project is East Africa, its borrowing capacity will

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