I think its B.
Sustainable farming focuses on producing long-term crops and livestock, while also having minimal effects on the environment.
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Suppose an unlevered firm issues $1000 in debt at a cost of debt of 10%. If the corporate tax rate is 20%, $200 t is the change in the firm's value.
Due to the issue of the corporate tax rate is entitled to Interest Tax Shield assuming Debt issued by the firm is perpetual and ignoring financial distress costs
Change in Value of firm
=Net Effect of Debt Financing
=Present Value of Interest Tax Shield (financial distress costs ignored)
= DebtValue * Cost of Debt * Tax Rate Interest Rate
= $1,000 * 10% * 20% 10%
=$200,
corporate tax rate, also known as corporate income tax or corporate tax, is a direct tax levied on the income or capital of a corporation or similar corporation. Many countries impose such taxes at the national level, and similar taxes may be levied at the state or local level.
Learn more about tax rate here: brainly.com/question/25791968
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Answer:
PV Index = 1.158
Explanation:
Present value index is the ratio of discounted cash flows of the project divided by initial outlay required for the project thus first we calculate the Present Values for Investment B
Present value factors @ 12% for year 0, 1, 2, 3, 4 respectively.
1
0.893
0.797
0.712
0.636
Net Present Value = -9000 + (5000 * 0.893) + (4000 * 0.797) + (3000 * 0.712) + (1000 * 0.636)
NPV = $1425
Present value Index = NPV / Initial investment = 1425/9000 = 0.158
This can be interpreted as 1 + 0.158 = 1.158,
1 being the initial investment. You can also choose not to subtract the initial outlay when calculating NPV.
Hope that helps.
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