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this is the whole question without any other conditions b) Suppose you want to calculate the present value of the final-year's interest tax shield for

this is the whole question without any other conditions

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b) Suppose you want to calculate the present value of the final-year's interest tax shield for a project that has a life of four years. When should each of the formulas below be used? Explain the rationale for using each formula. 5 Please turn over Formula 1: PV (ITS) = ITS (1 + RU)4 Formula 2: ITS4 PV (ITS) = (1+RD)* Formula 3: PV (ITS4) = ITSA (1+Ru) 3 (1+RD) (10 marks)

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