Thus we have npv i β d β e d e 2 8 2 3 10 6 2 4 10

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Thus, we have: NPV > I · β D β E · D E = 2 · 0 . 8 2 . 0 · 3 · 10 6 = 2 . 4 · 10 6 = 2 , 400 , 000 Page 6 of 6
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  • Fall '12
  • Simpson
  • Finance, Modigliani-Miller theorem, Weighted average cost of capital, Zero-coupon bond, Basic financial concepts

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