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Under the assumption that KXS's market share will be 0.25% higher in each subsequent year, you determine that the plant will require an expansion in 2020. The expansion will cost $21.5 million
Assuming that the financing of the expansion will be delayed accordingly (end of 2020), calculate the projected interest payments and the amount of the projected interest tax shields through
2023 (assuming that KXS still uses a 10-year bond, interest rates remain the same at 6.9%, and KXS's tax rate is 35%)
Current values ($000)
2018 2019 2020 2021 2022 2023
Outstanding debt before expansion $4,369 $4,369 $4,369 $4,369 $4,369 $4,369
Interest on debt before expansion $301 $301 $301 $301 $301 $301
Interest tax shield before expansion $105 $105 $105 $105 $105 $105
The total projected interest payments starting in 2021 will be $\boxed{} (Round to the nearest dollar)