12. Taxes and project NPV (S6.2) Suppose that Sudbury Mechanical Drifters is proposing to invest $10 million
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12. Taxes and project NPV (S6.2) Suppose that Sudbury Mechanical Drifters is proposing to invest $10 million in a new factory. It can depreciate this investment straight-line over 10 years. The tax rate is 40%, and the discount rate is 10%.
a. What is the present value of Sudbury’s depreciation tax shields?
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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