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