A project has a NPV of €2 million, assuming all equity financing. To finance the project, debt of €10 million is issued
Posted: Thu Dec 23, 2021 9:00 am
A project has a NPV of €2 million, assuming all equity
financing. To finance the project, debt of €10 million is issued at
10% interest, with principal repaid in a lump sum at the end of the
second year. The corporate tax rate is 40%.
Calculate the project's APV. Enter your answer with 0 decimals and
do not provide the euro sign or commas in your answer (e.g. write
€75,300,000.89 as 75300001).
financing. To finance the project, debt of €10 million is issued at
10% interest, with principal repaid in a lump sum at the end of the
second year. The corporate tax rate is 40%.
Calculate the project's APV. Enter your answer with 0 decimals and
do not provide the euro sign or commas in your answer (e.g. write
€75,300,000.89 as 75300001).