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Question 14 An all equity financed project has following information: Project lasts for 6 years Initial capital spending is $1,600 : Every year project will
Question 14 An all equity financed project has following information: Project lasts for 6 years Initial capital spending is $1,600 : Every year project will bring in an after-tax cash flow $470 The cost of all equity capital is 19% Firm's tax rate is 38% What is the NPV of this all equity financed project? Suppose firm finances the project with $800 of debt at 6% Interest rate What is annual interest tax shield? Continuing from part b, what is present value of all these years interest tax shield from this project? (for all parts above, DO NOT ROUND intermediate steps, round and format your answer into one decimal, ONLY after you finish all parts, for example: 12.3) MacBook Pro CEC Search or type URL 1 $ 4 26 5 1 2 3 02 7 8 9 0 C W E R T 0 S D F K
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