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Consider a firm with the following parameters: Physical Lifespan 4 years Capital Expense, Year 0 $9,000 EBITDA / Year $5,000 Overall Firm Cost of Capital

Consider a firm with the following parameters: Physical Lifespan 4 years Capital Expense, Year 0 $9,000 EBITDA / Year $5,000 Overall Firm Cost of Capital 8.6% Tax Rate 21% Loan $16,000 Interest Payments $551 Depreciation Project Life 6 years What is the total PV of this firm, including the loan?

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