Use the Information for the Question(s)below

question 52

Multiple Choice

Use the information for the question(s) below.
Aardvark Industries is considering a project that will generate the following free cash flows: You are also provided with the following market value balance sheet and information regarding Aardvark's cost of capital:
-Suppose that to fund this new project,Aardvark borrows $120 with the principal to be paid in three equal installments at the end each year.The levered value of Aardvark's new project is closest to:

• A)$210.15.
• B)$205.25.
• C)$207.00.
• D)$210.50.

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Definitions:

rRNA

Ribosomal RNA, a type of RNA that, together with proteins, makes up the ribosomes, where protein synthesis occurs.

Uracil

A nitrogenous base found in RNA, replacing thymine found in DNA, and pairs with adenine during RNA synthesis.

Adenine

A purine nucleobase, one of the four building blocks of DNA and RNA, involved in cellular energy transfer and signaling.

Ribose

Ribose is a five-carbon sugar essential for the structure of RNA and plays a role in the synthesis of ATP, an energy-carrying molecule in cells.