Two separate firms are considering investing in this project.Firm Unlevered plans to fund the entire $80,000 investment using equity,while firm Levered plans to borrow $45,000 at the risk-free rate and use equity to finance the remainder of the initial investment.Calculate the expected returns for both the levered and unlevered firms.
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PV(equity cash flows)= = $90,000C/F (...
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