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

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