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Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
Edition 7ISBN: 978-0073376301 Exercise 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.
a) before taxes and b) after taxes.
Explanation
Verified
Verified
10.21 (a) 0 = 2,800,000 - 196,000(P/A,i*...
Engineering Economy 7th Edition by Leland Blank ,Anthony Tarquin
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