- 2 Suppose You Want To Calculate The Present Value Of The Final Year S Interest Tax Shield For A Project That Has A Life 1 (165.54 KiB) Viewed 18 times
2) Suppose you want to calculate the present value of the final-year's interest tax shield for a project that has a life
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2) Suppose you want to calculate the present value of the final-year's interest tax shield for a project that has a life
2) Suppose you want to calculate the present value of the final-year's interest tax shield for a project that has a life of six years. The following formula PV (ITS6) = ITS6/(1+RÐ)6 should be used when: A. the debt associated with the interest tax shield is permanent. B. the debt associated with the interest tax shield is predetermined. C. the debt is adjusted continuously to maintain a target leverage ratio. D. the debt is adjusted periodically to maintain a target leverage ratio.