Question
The CFO of XYZ Corp. is evaluating a new investment project with $5,000,000 required investment. If financed with equity only, the unlevered NPV will be
"The CFO of XYZ Corp. is evaluating a new investment project with $5,000,000 required investment. If financed with equity only, the unlevered NPV will be -$55,000. The management is considering financing 70% of the project with a loan. If the NPV of the loan (NPVF) is 135,000 what is the APV of the project? "
| "$80,000 " | ||
| "$190,000 " | ||
| "$4,865,000 " | ||
| "$4,810,000 " |
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
9th Edition
032431986X, 9780324319866
