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Business, 06.07.2019 00:20 pkot3409

19. apv consider a project to produce solar water heaters. it requires a $10 million investment and offers a level after-tax cash flow of $1.75 million per year for 10 years. the opportunity cost of capital is 12%, which reflects the project’s business risk. a. suppose the project is financed with $5 million of debt and $5 million of equity. the interest rate is 8% and the marginal tax rate is 35%. an equal amount of the debt will be repaid in each year of the project’s life. calculate apv.

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19. apv consider a project to produce solar water heaters. it requires a $10 million investment and...
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