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Under the assumption that KXS's market share will be 0.25% higher in each subsequent year,...

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Finance

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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 $21.3 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 7.1%, and KXS's tax rate is 35%). Current values ($000) Outstanding debt before expansion Interest on debt before expansion Interest tax shield before expansion 2018 $4,399 $312 $109 2019 $4.399 $312 $109 2020 $4,399 $312 $109 2021 $4.399 $312 $109 2022 $4.399 $312 $109 2023 $4,399 $312 $109 The total projected interest payments starting in 2021 will be $ (Round to the nearest dollar.)

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