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Consider a firm that lasts 5-years and earns revenues of $80

Consider a firm that lasts 5-years and earns revenues of $800K per year (year 1-5) after an initial… Show more Consider a firm that lasts 5-years and earns revenues of $800K per year (year 1-5) after an initial investment of $1000K in year 0. PLEASE ANWER ONLY 2B – GIVE A STEP BY STEP EXPLANATION OR NO CREDIT. THANK YOU! a) With straight line depreciation and a tax rate of 10%, compute the taxes paid by the firm in years 1-5. I figured out that the firm pays $60K worth of taxes in years 1-5, so a total of $300K b) Assume that the firm carries no debt, and faces a cost of equity of 10%. What is the unlevered value of the firm? • Show less


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