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U Question 39 25 pts Dayton Mechanical, Inc. is currently evaluating a potential new investment. The investment will be financed with 5700.000 debt and $1,200,000

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U Question 39 25 pts Dayton Mechanical, Inc. is currently evaluating a potential new investment. The investment will be financed with 5700.000 debt and $1,200,000 of equity. The (unleveraged) after-tax cash flows, the CFATS. expected to rest from the investment are $1 million per year for three years, after which time the project is expected to be sold off for a net after-tax $1 million in cash The debt financing will take the form of three-year debt with interest payments of 12% per year on the remaining balance Principal payments will be $100,000 in year 1, $200,000 in year 2 and $400.000 at the end of year 3 The net benefits leverage factor, T', is 0.25 for this investment. The (unleveraged required return for the projects 2016 What is the present value of the interest tax shield from the project? (Enter your answer in dollars and cents

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