Homework Answers
Face value = Amount of debt = $20.19 million
Issue cost = Amount of debt * 2.8%
= $20.19 million * 2.8%
= $0.56532 million
NPV = NPV before issue cost - Issue cost
= $15.061 million - $0.56532 million
= $14.49568 million
The new NPV will be $14.49568 million ($14,495,680).
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17. You are planning a new project that is to be entirely financed by issuing new...
You are planning a new project that is to be entirely financed by issuing new debt....
You
are planning a new project that is to be entirely financed by
issuing new debt. The project will require
$ 20.09$20.09
million in financing and you estimate its NPV to be
$ 14.757$14.757
million. The issue costs for the debt will be
2.7 %2.7%
of face value. Taking into account the costs of external
financing, what is the NPV of the project?
The new NPV will be (Round to the nearest
dollar.)
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You
are planning a new project that is to be entirely financed by
issuing new debt. The project will require
$ 20.09$20.09
million in financing and you estimate its NPV to be
$ 14.757$14.757
million. The issue costs for the debt will be
2.7 %2.7%
of face value. Taking into account the costs of external
financing, what is the NPV of the project?
The new NPV will be (Round to the nearest
dollar.)
X P 13-26 (similar to) Question Help...
You are planning a new project that is to be entirely financed by issuing new debt. The project will require $20.00 million in financing and you estimate its NPV to be $15.000 million. The issue costs for the debt will be 3.0% of face value. Taking into account the costs of external financing, what is the NPV of the project?
You are getting ready to start a new project that will incur some cleanup and shutdown costs when it is completed. The project costs $5.35 million up front and is expected to generate $1.16 million per year for 10 years and then have some shutdown costs at the end of year 11. Use the MIRR approach to find the maximum shutdown costs you could incur and still meet your cost of capital of 14.9% on this project. . (Round to...
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