A firm's investments cost $100,000 and are expected to return $118,000 before taxes at the end of 1 year at which point it will be closed down. The firm pays taxes at the marginal rate of 40%, and the appropriate cost of capital is 12%. What is the NPV of the firm?

Answer rating: 100% (QA)

We can calculate the Net Present Value NPV of the firm using the followi... View the full answer