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In the adjusted present value (APV) approach If: Investment = $2,500,000 Cash flow from equity = $125,000 Cost of equity = 21% Cost of Debt
In the adjusted present value (APV) approach
If: Investment = $2,500,000 Cash flow from equity = $125,000 Cost of equity = 21% Cost of Debt = 10% Interest on debt = 8% Tax = 35% Finance the deal half with equity and half with debt what is the APV, adjusted present value?
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