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Maru [420]
3 years ago
8

NDS Industries is evaluating a project with an initial investment at Time 0 of $640,000. The present value of the levered cash f

lows 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.
Business
1 answer:
RoseWind [281]3 years ago
3 0

Answer: $67600

Explanation:

Using the flow-to-equity method of valuation, the amount borrowed will be calculated thus:

NPV = $157000

Add : Initial investment = $640000

Present value of cash inflow = $797000

Less : Present value of Levered cash flow = $729400

Amount borrowed = $67600

Therefore, the amount borrowed is $67600.

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3 0
2 years ago
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Sliva [168]

Answer:

1.88%  and $1,339

Explanation:

The computation of the amount of change revenue is shown below:-

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8 0
3 years ago
With a regressive tax system, as the level of income increases in an economy, the average tax rate will: 
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Ostrovityanka [42]

Answer:

The correct answer to the following question is option B) decrease.

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6 0
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What role do values play in making ethical decisions?
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