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A $11 million project is expected to return $19 million next year. Your firm is in a 35% combined federal and state marginal income tax
A $11 million project is expected to return $19 million next year. Your firm is in a 35% combined federal and state marginal income tax bracket. You finance the project with $8 million in debt at a rate of 6%. What amount do you save in taxes by using debt instead of cash to finance the project? 2,632,000 168,000 2,800,000 2,968,000
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