Question
ABC borrows $11,632 at a subsidized rate of 2.7% to invest in a project. The project lasts for 11 years and ABC repays the loan
ABC borrows $11,632 at a subsidized rate of 2.7% to invest in a project. The project lasts for 11 years and ABC repays the loan at the end of the project. If ABC's cost of debt is 7.7% and the tax rate is 32%, calculate the NPV of the this loan financing.
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
