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Can someone explain the step-by-step to calculate the PV with such condition? Leveraged Cash Flow for Company X is $84,068.85. The discount rate for an
Can someone explain the step-by-step to calculate the PV with such condition?
Leveraged Cash Flow for Company X is $84,068.85. The discount rate for an unlevered firm is 20% and for a levered firm is 22.2%. The Present Value of the Project for Company X is assuming cash flow in perpetuity and with no growth?
Do we use the 20% discount rate or the 22.2% discount rate?
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