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Suppose That to Fund This New Project,Aardvark Borrows $120 with the Principal

Question 17

Multiple Choice

Suppose that to fund this new project,Aardvark borrows $120 with the principal to be paid in three equal installments at the end each year.The levered value of Aardvark's new project is closest to:


A) $210.15
B) $207.35
C) $207.00
D) $210.50

Correct Answer:

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