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Abacus Industries is considering a 3 - year project that will cost $ 2 0 0 today followed by free cash flows to firm of
Abacus Industries is considering a year project that will cost $ today followed by free cash flows to firm of $ in year $ in year and $ in year
Assume they fund the project with equity at an unlevered cost of equity is The tax rate is The unlevered NPV of the project is Abacus Industries is considering a year project that will cost $ today followed by free cash flows to the firm of $ in year $ in year and $ in year The tax rate is
Assuming instead of equity, Abacus funds the project with $ of debt at an interest rate of For the three years of the project ABC will pay only interest. The loan of $ will be repaid at the end of year The balance of the cost of the project will be financed with equity. What is the levered NPV of this project using the APV method?
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