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The firm can obtain a five-year 3 000 000$ loan at 12.5% to partially finance the project. If the project were financed with all equity,
The firm can obtain a five-year 3 000 000$ loan at 12.5% to partially finance the project. If the project were financed with all equity, the cost of capital would be 18%. The corporate tax rate is 34$ and the risk-free rate is 4%. The project will require a 100 000$ risk-free investment in net working capital. Calculate the APV
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