... explain the basic stages in designing a simple simulation model, the different types of distribution controlling the key variables within the model, and the significance of its output (and use to predict the likelihood of project success)•calculate and interpret the ‘value at risk’ in a given scenario.129chapter7 ACCA Paper P4 Advanced financial management Essential text $400,000 is to be borrowed for 3 years and repaid in equal instalments. The riskfree rate is 10% and all debt is assumed to be risk free. Calculate the present value of the tax relief on the debt interest if the corporation tax rate is 30%. Assume that tax is delayed 1 year.SolutionEqual annual repayment = 400,000 / 3yr AF@10% = 400,000/2.487 = $160,836YearOpeningInterest atRepaymentClosing balancebalance...