Solve Problem 16.4 assuming a nominal yen discount rate of 10 percent per year and a corporate

Question:

Solve Problem 16.4 assuming a nominal yen discount rate of 10 percent per year and a corporate tax rate of percent. The initial cash outflow of ¥600,000 will be capitalized on the balance sheet and depleted for tax purposes during the year. At the end of the year, you will receive a depletion tax shield of

. Note that taxes also will reduce your operating cash flow by 30 percent.

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