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A firm plans to invest $50,000 in R&D that will be depreciated straight-line over a 5-years. What is the present value of the resulting depreciation
A firm plans to invest $50,000 in R&D that will be depreciated straight-line over a 5-years. What is the present value of the resulting depreciation tax shield if the tax rate is 21% and the discount rate is 16%? $6,876.00 $7,960.65 $10,500.00 O $39,500.00 How much of a stock's $30 price is reflected in PVGO if it expects to earn $5 per share, has an expected dividend of $2.50, and a required return of 20%? O $0 O $5 O $8 O $10 What is the IRR for a project that costs $100,000 and provides annual cash inflows of $27,024 for 6 years starting one year from today? 19.91% O 16.67% 15.84% O 22.09%
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