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Consider a firm with the following parameters: Physical Lifespan 4 years Capital Expense, Year 0 $11,000 EBITDA / Year $6,000 Overall Firm Cost of Capital
Consider a firm with the following parameters:
| Physical Lifespan | 4 years |
|---|---|
| Capital Expense, Year 0 | $11,000 |
| EBITDA / Year | $6,000 |
| Overall Firm Cost of Capital | 6.5% |
| Tax Rate | 38% |
| Loan | $20,000 |
| Interest Payments | $643 |
| Depreciation Project Life | 6 years |
What is the total PV of this firm, including the loan? Round to 4 decimal places. Please show all work
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Risk Management In Forex How To Minimize Losses And Maximize Returns
Authors: Eunice Loar
1st Edition
979-8388778864
