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K = 1000 dollars Loss of the project minus = -13.5% year Funds: $25,000 Debt (money borrowed at the bank) = $150,000 Cost of the

K = 1000 dollars

Loss of the project minus = -13.5% year

Funds: $25,000

Debt (money borrowed at the bank) = $150,000

Cost of the debt = 7% /year

By using the concept of leverage, how much is the loss in $$ after 1 year?

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