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please answer 23 Suppose Mendelson, Inc. is evaluating a potential new investment. The investment will be financed with $200,000 of debt and $200,000 of equity.

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Suppose Mendelson, Inc. is evaluating a potential new investment. The investment will be financed with $200,000 of debt and $200,000 of equity. The (unleveraged) after-tax cash flows, the CFATs, expected to result from the investment are $300,000 per year for four years. At that time the firm expects to be able to sell the project for a net after-tax $200,000 in cash. The debt financing will be four-year debt with interest rates of 10% per year on the remaining balance. Principal payments $40,000 in year 1 (end of year). $20,000 in year 2 (end of year). $20,000 in year 3 (end of year), and a final principal payment of $20,000 at the end of year 4. The net- benefit-to-leverage factor, T", is 0.20. The (unleveraged) required return for the project is 20%. What is the project's present value of equity after-tax cash flows? (Enter your answer in dollars and cents) Question 23 4 pts Refer to the potential new investment by Mendelson, Inc. What is the project's net adjusted present value (APV)? (Enter your answer in dollars and cents) Suppose Mendelson, Inc. is evaluating a potential new investment. The investment will be financed with $200,000 of debt and $200,000 of equity. The (unleveraged) after-tax cash flows, the CFATs, expected to result from the investment are $300,000 per year for four years. At that time the firm expects to be able to sell the project for a net after-tax $200,000 in cash. The debt financing will be four-year debt with interest rates of 10% per year on the remaining balance. Principal payments $40,000 in year 1 (end of year). $20,000 in year 2 (end of year). $20,000 in year 3 (end of year), and a final principal payment of $20,000 at the end of year 4. The net- benefit-to-leverage factor, T", is 0.20. The (unleveraged) required return for the project is 20%. What is the project's present value of equity after-tax cash flows? (Enter your answer in dollars and cents) Question 23 4 pts Refer to the potential new investment by Mendelson, Inc. What is the project's net adjusted present value (APV)? (Enter your answer in dollars and cents)

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