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Assume that KMS' market share will increase by 0.25% per year and that its prices remain as in the chapter. What production capacity will KMS
Assume that KMS' market share will increase by 0.25% per year and that its prices remain as in the chapter. What production capacity will KMS require each year? When will an expansion become necessary (when will production volume exceed 1100)? Problem 18-13 Under the assumption that KMS' market share will increase by 0.25% per year, you determine that the plant will require an expansion in 2018. The expansion will cost $20 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that the KMS still uses a 10-year bond and interest rates remain the same as in the chapter) through 2021
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