Balance Sheet – Outstanding Debt, business and finance homework help

Ideko’s production plant will require an expansion in 2010 (when production volume will exceed the current level by 50%), and the cost of this expansion will be $15.0 million. Assuming the financing of the expansion will be delayed accordingly, calculate the projected interest payments and the amount of the projected interest tax shields (assuming that the interest rate on the term loans is 6.8% and the corporate tax rate is 35%) through 2010.

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