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1. As Hal was inquiring about the tax provisions in India, he was told that there was a high probability that the Indian government would

1. As Hal was inquiring about the tax provisions in India, he was told that there was a high probability that the Indian government would offer a reduced tax rate (20%) to foreign investors who used some indigenous raw materials and employed Indians. If this does happen, how would the analysis be affected? (Hint: You do not have to recalculate the NPV, just identify the direction of the impact to the project value.)

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