2) Suppose you want to calculate the present value of the final-year's interest tax shield for a project that has a life
Posted: Thu May 26, 2022 7:11 am
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.