Assuming That to Fund the Investment Taggart Will Take on $250

question 58

Multiple Choice

Assuming that to fund the investment Taggart will take on $250 million in permanent debt and assuming Taggart will incur a 2% (after-tax) underwriting fee on the new debt issue,the NPV of Taggart's new rail line is closest to:

• A)$195 million
• B)$200 million
• C)$235 million
• D)$240 million

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