Kelly Industries is given the opportunity to raise $5 million in debt through a local government subsidized program. While Kelly would be required to pay 12% on its debt issues, the Hampton County program sets the rate at 9%. If the debt issues expire in 4 years, calculate the NPV of this financing decision.

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The Answer of Kelly Industries is given the opportunity to raise $5 million in debt through a local government subsidized program. While Kelly would be required to pay 12% on its debt issues, the Hampton County program sets the rate at 9%. If the debt issues expire in 4 years, calculate the NPV of this financing decision.

Kelly Industries Is Given the Opportunity to Raise $5 Million