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You are a financial manager at ABC Corp. and are trying to assess the following project. The project will require a $250 million initial investment

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You are a financial manager at ABC Corp. and are trying to assess the following project. The project will require a $250 million initial investment and will generate free cash flows in years 1-4 as shown in the table below ABC Corp maintains a constant debt-to-enferprise value ratio of 10% and its current WACC is 9.8% Assuming that ABC Corp. takes the project, how much additional debt must the firm issue in order to maintain a constant debt-to-enterprise value ratio of 10%? Select One. 3 Free Cash Flows for New Project (in 9 million) Year 0 1 2 FCF (In $ millions) (250.00) 100.00 150.00 100.00 4 50.00 OL $754 million OIL $75.44 million II. $2.5 million OIV 532 54 million OV, $25 million

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