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Under the assumption that KXS's market share will be 0.23 %0.23% higher in each subsequent year, you determine that the plant will require an expansion
Under the assumption that KXS's market share will be
0.23 %0.23%
higher in each subsequent year, you determine that the plant will require an expansion in 2020. The expansion will cost
$ 20.2$20.2
million. Assuming that the financing of the expansion will be delayed accordingly (end of 2020), calculate the projected interest payments and the amount of the projected interest tax shields through 2023 (assuming that KXS still uses a 10-year bond, interest rates remain the same at
7.3 %7.3%,
and KXS's tax rate is
35 %35%).
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