Variable costs: $50 per pair of shoes. Kanes discount rate is 12%, the corporate rate is 35%,
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Variable costs: $50 per pair of shoes.
Kane’s discount rate is 12%, the corporate rate is 35%, and R&D expenses are tax deductible against other profits of the company. Assume that at the end of the project (i.e., after year 13), the new technology will have been superseded by other technologies and therefore have no value.
Compute the NPV and the IRR of the project.
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Related Book For 
Principles Of Finance With Excel
ISBN: 9780190296384
3rd Edition
Authors: Simon Benninga, Tal Mofkadi
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