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You are considering a project that you will finance with only private debt. The project is expected to generate NCFs of $15,000 each year for

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You are considering a project that you will finance with only private debt. The project is expected to generate NCFs of $15,000 each year for the next 10 years and the NINV is $100,000, If the NPV is $12,524.03. What is the before-tax cost of the private debt? The tax rate is 21%. a. 5.60% b. 6.12% c. 6.56% d. 7.09%

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