A New Business Will Generate a One-Time Cash Flow of $20,000

Multiple Choice

A new business will generate a one-time cash flow of $20,000 after one year.The business will be financed with 50% equity and 50% debt.If the firm's unlevered equity cost of capital is 10%,what is the levered value of the firm with perfect capital markets?

A) $18,182
B) $20,000
C) $19,000
D) $22,000
E) $18,000