... 5 -$ 1,000 -2 ,500 1,000 1,500 1,500 1,700 $1,0002,500 -1 ,000 -1 ,500 -1 ,500 -9 21$3,653 -4 18 -4 18 -4 18 -4 18 -4 ,217 $-2 ,500 -1 ,0001,0001,5001,5001,930$2,5001,000 -1 ,000 -1 ,500 -1 ,500 -1 ,254$3,805 -4 35 -4 35 -4 35 -4 35 -4 ,392NPV ... $1,0002,500 -1 ,000 -1 ,500 -1 ,500 -9 21$3,653 -4 18 -4 18 -4 18 -4 18 -4 ,217 $-2 ,500 -1 ,0001,0001,5001,5001,930$2,5001,000 -1 ,000 -1 ,500 -1 ,500 -1 ,254$3,805 -4 35 -4 35 -4 35 -4 35 -4 ,392NPV or FPV at 10% 761 -2 77 -2 90 767 -3 47 -3 01APV = NPV + FPV 484 471 420 466 Back to top ... $500 76 78 80 82 84 86 88 -$ 500 114 112 110 108 106 104 102 +$400 -8 8 -8 8 -8 8 -8 8 -8 8 -8 8 -8 8 -$ 100 26 24 22 20 18 16 14 Example 6-9 : Effects of Leverage and Tax...