A firm is evaluating a project with an initial investment at time 0 of $640,000. The present value of the levered cash flows is
$729,400 and the net present value of the project is $157,000. Using the flow-to-equity method of valuation determine the amount borrowed.A. $89,400B. $67,600C. $54,300D. $64,000
In simple words, A limited liability corporation (LLC) is a type of private company structure. It's among the most frequent legal structures for forming a company. In a comprehensive partnerships all members are accountable for the firm and have unlimited accountability for its obligations.
Thus the limited liability structure is most suitable for the two.