Question: The new project is financed with the same capital structure as the entire firm (implying that the interest tax shield should be discounted using the

 The new project is financed with the same capital structure as

The new project is financed with the same capital structure as the entire firm (implying that the interest tax shield should be discounted using the unlevered cost of capital). To do so, you raise $464 in debt at year 0. Then, what would the present value of the interest tax shield be? Assume that the interest rate on the debt is the same as the firm's cost of debt (1.e. 10%). A $200 B. $140 C$20 D.9160 The new project is financed with the same capital structure as the entire firm (implying that the interest tax shield should be discounted using the unlevered cost of capital). To do so, you raise $464 in debt at year 0. Then, what would the present value of the interest tax shield be? Assume that the interest rate on the debt is the same as the firm's cost of debt (1.e. 10%). A $200 B. $140 C$20 D.9160

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