Question: Under the assumption that KMSs market share will increase by 0.25% per year, you determine that the plant will require an expansion in 2012. The

Under the assumption that KMS’s market share will increase by 0.25% per year, you determine that the plant will require an expansion in 2012. The expansion will cost $20 million. Assuming that the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that KMS still uses a ten-year bond and interest rates remain the same as in the chapter) through 2015.

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