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A Project Will Give a One-Time Cash Flow of $25,000

Question 39

Multiple Choice

A project will give a one-time cash flow of $25,000 after one year. If the project risk requires a return of 12%, what is the levered value of the firm with perfect capital markets?


A) $22,000
B) $22,321
C) $19,882
D) more information needed

Correct Answer:

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