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A company has the following forecast cash flows available for debt service. It intends to take out a 5 year amortizing loan. Based on the
A company has the following forecast cash flows available for debt service. It intends to take out a 5 year amortizing loan. Based on the cash flows calculate the amount the company can borrow now. Interest rate 5.0% Marginal tax rate 20.0% Year 1.0 2.0 3.0 4.0 5.0 Cash flows 150.0 100.0 300.0 350.0 500.0 Select one: 1,400.0 1,213.5 1,133.3 1,172.4
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