PRIN.OF CORPORATE FINANCE
PRIN.OF CORPORATE FINANCE
13th Edition
ISBN: 9781260013900
Author: BREALEY
Publisher: RENT MCG
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Chapter 28, Problem 21PS
Summary Introduction

To compute: The time interest earned for the industry and other possible way to calculate this measure and whether any change in the end result.

Summary Introduction

To compute: Any other possible way to calculate time interest earned and whether any change in the end result.

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ng Equipment is worth $998,454. It is expected to produce regular cash flows of $78,377 per year for 20 years and a special cash flow of $34,800 in 20 years. The cost of capital is X percent per year and the first regular cash flow will be produced in 1 year. What is X? Input instructions: Input your answer as the number that appears before the percentage sign. For example, enter 9.86 for 9.86% (do not enter .0986 or 9.86%). Round your answer to at least 2 decimal places. percent
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