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A Project Will Give a One-Time Cash Flow of $35

Question 27

Multiple Choice

A project will give a one-time cash flow of $35 000 after one year. If the project risk requires a return of 11%, what is the levered value of the firm with perfect capital markets?


A) $31 532
B) $29 000
C) $30 000
D) More information is needed

Correct Answer:

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