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with following information: Initial capital spending is $10.0 Million; The project will create perpetual $7.1 Million sales revenue every year. Annual operating cost is $1.8
with following information: Initial capital spending is $10.0 Million; The project will create perpetual $7.1 Million sales revenue every year. Annual operating cost is $1.8 Million. Ignore depreciation cost. The cost of unlevered discount rate is 16%. Corporate tax is 39%. What is annual operating cash flow from this project? What is the NPV of this all equity financed project? If firm decides to borrow $5.8 Million at 5% borrowing rate for this project. What is present value the project's interest tax shield
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