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Suppose That to Fund This New Project,Aardvark Borrows $120 Million

Question 56

Multiple Choice

Suppose that to fund this new project,Aardvark borrows $120 million with the principal to be paid in three equal installments at the end each year.The present value of Aardvark's interest tax shield is closest to:


A) $5.15
B) $5.00
C) $5.90
D) $5.25

Correct Answer:

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