Question
CDE borrows $10,961 at a subsidized rate of 2.8% to invest in a project. The project lasts for 12 years and CDE repays the loan
CDE borrows $10,961 at a subsidized rate of 2.8% to invest in a project. The project lasts for 12 years and CDE repays the loan at the end of the project. If CDE's cost of debt is 7.0% and the tax rate is 36%, calculate the NPV of the this loan financing.
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Principles of Corporate Finance
Authors: Richard A. Brealey, Stewart C. Myers
7th edition
72869461, 72467665, 9780072467666, 978-0072869460
