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A project has an NPV, assuming all equity financing, of $1.7 million. To finance the project, a total debt of $10 million is issued at
A project has an NPV, assuming all equity financing, of $1.7 million. To finance the project, a total debt of $10 million is issued at 10% annual interest, with principal repaid in a lump sum at the end of the fifth yearIf the firms tax rate is 34%, what is the projects APV?
A. $1,500,000 B. $1,988,756 C. $3,285,320 D. $2,988,868 E. $2,788,868
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