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4. Tiger PLC has the following projects: Project A B C D The company has only $250,000 available at year 0. There is no
4. Tiger PLC has the following projects: Project A B C D The company has only $250,000 available at year 0. There is no other investment opportunity for the firm with any spare cash which is not invested in the above 4 projects. Assume that all projects above are infinitely divisible. Explain, with supporting calculations, which projects the company should choose to maximize its value? What is the optimal NPV of the investment plan? Would your advice to the management be different if these projects are not infinitely divisible? What would be the NPV of the revised investment plan? Initial Investment, $ 100,000 150,000 75,000 50,000 NPV (after tax), $ 10,000 25,000 5,000 6,000
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
