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Journal of Finance and Investment Analysis
A model to value risky cash-flows through discounting at determin-istic rates is presented. The analysis mainly concerns with the valuation of project's levered cash-flows under default risky debt and general tax shield assumptions. Deterministic unlevered and levered rates as well as a deterministic Weighted Average Cost of Capital (dWACC) are defined and the relevant relationships among them are derived. The model allows to account for the risk of cash-flows in a proper way and produce exactfatcat:323pmsbxtzgwlnfbl5ucj2kd7e