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A firm's investments cost $80000 and are expected to return $97000 before taxes at the end of 1 year. The firm is financed with $50000
A firm's investments cost $80000 and are expected to return $97000 before taxes at the end of 1 year. The firm is financed with $50000 debt at an expected rate of 6%. The firm pays taxes at the marginal rate of 35%, and the appropriate cost of capital is 8%. What is the NPV of the firm if it is all equity financed?
A. (4,306)
B. 10,231
C. 4,306
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