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A firm is considering a 5 year loan to the value of $5 million. The company will pay interest of 7,5% per annum on the
A firm is considering a 5 year loan to the value of $5 million. The company will pay interest of 7,5% per annum on the oustanding balance and will make equal year end principal payments ,completely retiring the loan at the end of the fifth year. the corporate tax rate is 28%. Calculate the NPV of the financing side effects
A)$0.27 million
B)$0,17 million
c)$0,43 million
d)$0,83 million
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