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You have an investment project with the following expected cash flows. Right now, it will cost you $ 130,000. You will net $ 20,000 in

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You have an investment project with the following expected cash flows. Right now, it will cost you $ 130,000. You will net $ 20,000 in the first year, $ 40,000 in the second year, $ 50,000 in the third year, $ 50,000 in the fourth year, and $ 40,000 in the fifth year which is also the last year of the project. Your WACC is 11.5% and your pre tax cost of debt is 13%. The Pl is: Select one: 92 a. b. 1.09 c. 1.18 d. 1.36 e. 1.54 A main advantage of debt capital is: Select one: a. it is permanent capital b. it causes no loss of ownership control c. it tends to be relatively cheap due to tax breaks d. there are more stupid people willing to lend than invest e. it improves your balance sheet so you can get even more capital from other sources

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