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Suppose Firm A wants to invest in a project that has total present value equal to $ 5 0 , 0 0 0 . Using

Suppose Firm A wants to invest in a project that has total present value equal to $

50, 000 .

Using MM propositions with taxes, and assuming that the corporate tax rate is

40 %,

what would be the total value of Firm A

(

value of assets

)

if it used equity to finance the project?

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