The corporate tax rate is 40%, and the discount rate is 10%. BMM Corp. just invested $10
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The corporate tax rate is 40%, and the discount rate is 10%. BMM Corp. just invested $10 million in new machinery, planning to depreciate it to a value of zero using straight-line depreciation over 10 years. The firm was delighted when a new tax law allowed it to fully depreciate the machinery immediately. What happened to the NPV of its investment?
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Related Book For 
Fundamentals of Corporate Finance
ISBN: 978-1260566093
10th edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus
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