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For the next 2 questions consider a project with the following data i=rdehe=7%Kil=rmint=15%K=requit=24.9%K=rwacc=11.20%Taxrate=40% The 5-year project requires equipment that costs $200,000. If undertaken, the shareholders

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For the next 2 questions consider a project with the following data i=rdehe=7%Kil=rmint=15%K=requit=24.9%K=rwacc=11.20%Taxrate=40% The 5-year project requires equipment that costs $200,000. If undertaken, the shareholders will contribute $80,000 cash and borrow $120,000 with an interest-only loan with a maturity of 5 years and annual interest payments. The equipment will be depreciated straight-line to zero over the 5 -year life of the project. When using the APV methodology, what is the NPV of the depreciation tax shield? $87.152.98 557.402 .76 575.777 .95 $52.794.65 $65,603,16 When using the APV methodology, what is the NPV of the interest tax shield? $15,233.16$13,776.66$10.113.35$22,961.11$17,451.89

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