Question: Based on the information below, calculate the adjusted present value (APV), given that the project lifespan is 1 year and is being financed by 30%

Based on the information below, calculate the adjusted present value (APV), given that the project lifespan is 1 year and is being financed by 30% debt: Investment at t=0 33,000 Cashflow after yr1 39,600 Cost of capital (COC) 53% Cost of debt 43% Tax 33%

a) The adjusted present value (APV) is: -4325.31 b) The adjusted present value (APV) is: -5307.69 c) The adjusted present value (APV) is: -7117.65 d) The adjusted present value (APV) is: -6135.26

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!