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A firm is evaluating a project with an initial investment at time 0 of $640,000. The present value of the levered cash flows is $729,400

A firm is evaluating a project with an initial investment at time 0 of $640,000. The present value of the levered cash flows is $729,400 and the net present value of the project is $157,000. Using the flow-to-equity method of valuation determine the amount borrowed.

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