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6) Assume a project is financed through debt at a 5 per cent interest rate. The debt financing requires $12 million as interest payments each
6) Assume a project is financed through debt at a 5 per cent interest rate. The debt financing requires $12 million as interest payments each year for five years. Assuming the tax rate of 35 per cent, the value of the interest tax shield is equal to:
36.37 million
21.82 million
14.55 million
18.18 million
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