Question
2.The BSC Co. was planning to raise $2.5 million in perpetual debt at 11%. However, they just received an offer from the governor of a
2.The BSC Co. was planning to raise $2.5 million in perpetual debt at 11%. However,
they just received an offer from the governor of a nearby state to raise the financing
for them at 8% if they locate a new facility in that state. What is the total value added
from debt financing if the tax rate is 34% and the state subsidizes the loan for the
company?
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
