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A firm is considering investing in a project that yields a cash flow of $500,000 per year before any interest or taxes are paid. The
A firm is considering investing in a project that yields a cash flow of $500,000 per year before any interest or taxes
are paid. The corporate tax rate is 34% and the project was financed with equity and with bonds which promise an
interest payment of $200,000 per year. In using the Flow-To-Equity (FTE) method to value this project, what would the
levered cash flows be
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