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Suppose that UK Motors Ltd . is considering an investment of 3 0 million to develop a new factory. Assume that the company s stockholders
Suppose that UK Motors Ltd is considering an investment of million to develop a new factory. Assume that the companys stockholders require a rate of return, that the companys bondholders require a rate of return, that the UK corporate tax rate is that of the project will be financed by debt, and that of the project will be financed with equity. What must be the annual income from the project if it is to be a zero net present value investment?
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