Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin

تمرين 30

The cash flow plan associated with a debt financ­ing transaction allowed a company to receive $2,800,000 now in lieu of future interest payments of $196,000 per year for 10 years plus a lump sum of $2,800,000 in year 10. If the company's effec­tive tax rate is 33%, determine the company's cost of debt capital
a) before taxes and b) after taxes.