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Problem 18-13 Question Help Under the assumption that XS's market share will be 0.27% higher in each subsequent year, you determine that the plant will
Problem 18-13 Question Help Under the assumption that XS's market share will be 0.27% higher in each subsequent year, you determine that the plant will require an expansion in 2020. The expansion will cost $21.1 million. Assuming that the financing of the expansion will be delayed accordingly (end of 2020), calculate the projected interest payments and the amount of the projected interest tax shields through 2023 (assuming that is still uses a 10-year bond, interest rates remain the same at 7.3%, and KXS's tax rate is 35%). Current values (5000) Outstanding debt before expansion Interest on debt before expansion Interest tax shield before expansion 2018 $4,448 $325 $114 2019 $4,448 $325 S114 2020 $4,448 $325 $114 2021 $4,448 $325 $114 2022 $4,448 $325 $114 2023 S4,448 $325 $114 The total projected interest payments starting in 2021 will be $ 1865004. (Round to the nearest dollar.) The interest tax shields starting in 2021 will be $ 652751 . (Round to the nearest dollar.) Problem 18-13 Question Help Under the assumption that XS's market share will be 0.27% higher in each subsequent year, you determine that the plant will require an expansion in 2020. The expansion will cost $21.1 million. Assuming that the financing of the expansion will be delayed accordingly (end of 2020), calculate the projected interest payments and the amount of the projected interest tax shields through 2023 (assuming that is still uses a 10-year bond, interest rates remain the same at 7.3%, and KXS's tax rate is 35%). Current values (5000) Outstanding debt before expansion Interest on debt before expansion Interest tax shield before expansion 2018 $4,448 $325 $114 2019 $4,448 $325 S114 2020 $4,448 $325 $114 2021 $4,448 $325 $114 2022 $4,448 $325 $114 2023 S4,448 $325 $114 The total projected interest payments starting in 2021 will be $ 1865004. (Round to the nearest dollar.) The interest tax shields starting in 2021 will be $ 652751 . (Round to the nearest dollar.)
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