Assume you are at time 0, that you have just made the capital expenditure and that you just received the tax benefit from the first depreciation installation. Assume further that the company is also financed by debt in the amount of 20,000,000 and that the interest rate is 3.5%. What is the value of the project's equity at this time?

Answer rating: 100% (QA)

SOLUTION To calculate the value of the projects equity we need to first determine the present value of the projects cash flows both from operations an... View the full answer