If the rms tax rate is 34 calculate the projects adjusted


Assuming all equity ?nancing, a project has a net present value (NPV) of $1.5 million. To ?nance the project, debt is issued with associated ?oatation costs of $60,000. The ?oatation costs can be amortized over the project's 5 year life. The debt of $10 million is issued at 10% interest, with principal repaid in a lump sum at the end of the ?fth year. If the ?rm's tax rate is 34%, calculate the project's adjusted present value (APV)

Solution Preview :

Prepared by a verified Expert
Finance Basics: If the rms tax rate is 34 calculate the projects adjusted
Reference No:- TGS02894394

Now Priced at $10 (50% Discount)

Recommended (92%)

Rated (4.4/5)