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upont cost of $19.8 million. The developed and will be worth $35.5 million in one year Suppose the free intereses 10.5% anume cash flows a.

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upont cost of $19.8 million. The developed and will be worth $35.5 million in one year Suppose the free intereses 10.5% anume cash flows a. the choose not to develop the land what is the value of them's guilty today? What is the value of the debtoday and more are no lanen Whatever Soose them morom the others Overhea d the land what the value of ne d. Give your answer to particl would equity holdiers be willing to provide the $19.8 million d ed to develop the a. I the firm choc o l to develop the land what is the value of the secuilty today? What is the value of the debtoday? If the fir chooses to develop the land, the value of new milion found to two decimal places can develop the land of Consider a firm whose only assets a plot of vacant land, and whose only abiti deo of $15.2 milion de in one year. If lovacant, the land will be worth $10 2 min in one year Atemvely, the upfront cost of $19.8 million. The developed and will be worth $556 milion in one year. Supose the free Worest rate is 100% assume alcash fows are risk hoe and assume there are no me a. If the firm choose not to develop the land, what is the value of them's u loday? What is the value of the debt today? b. What is the NPV of developing the land? c. Suppose the firm raises $19.8 million from the equiry holders to develop the land of Perm develops the land, what is the value of the firm's equity today? What is the value of the firm's debt today? d. Given your answer to partic), would equity holders be willing to provide the $19.8 million needed to develop the land? a. If the firm chooses not to develop the land, what is the value of the firm's quity today? What is the value of the debtoday? If the firm chooses not lo develop the land, the value of the equity is million found to two decimal places.)

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