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A project has an unlevered NPV of $1.5 million. To finance the project, debt is being...

A project has an unlevered NPV of $1.5 million. To finance the project, debt is being issued with associated flotation costs of $60,000. The flotation costs can be amortized over the project's 5-year life. The debt of $10 million is being issued at the market interest rate of 10 percent paid annually, with principal repaid in a lump sum at the end of the fifth year. If the firm's tax rate is 21 percent, calculate the project's APV.

$2,441,107

$1,494,028

$2,384,312

$2,245,618

$1,909,417

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jeff jeffy answered 1 month ago
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