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Question 33 0.35 pts A project has an unlevered NPV of $500,000. To finance the project, debt is being issued with associated flotation costs of
Question 33 0.35 pts A project has an unlevered NPV of $500,000. To finance the project, debt is being issued with associated flotation costs of $60,000. The flotation costs can be amortized over the project's 5-year life. The debt of $10 million is being issued at the market interest rate of 10 percent paid annually, with principal repaid in a lump sum at the end of the fifth year. If the firm's tax rate is 21 percent, calculate the project's APV. $1,441,107 $494,028 $909,417 $1,245,618 $1,384,312
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