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You are to consider a new project that requires $1,200,000 finance with the interest rate of 12% and is expected to generate additional cash flow
You are to consider a new project that requires $1,200,000 finance with the interest rate of 12% and is expected to generate additional cash flow of $150,000 each year. In terms of financing, you are to borrow the money from you. Compute the total cash flow per year if the corporate tax of 35% is imposed.
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