Question
It is being considered to invest in a project that is intended to be financed with 75% debt. The loan runs over the project's life
It is being considered to invest in a project that is intended to be financed with 75% debt. The loan runs over the project's life of three years and has an interest rate before tax of 8% per year. The total return on capital after tax is 9%.
Estimate the internal rate of return after tax for equity using the leverage formula.
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Contemporary Engineering Economics
Authors: Chan S. Park
5th edition
136118488, 978-8120342095, 8120342097, 978-0136118480
