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A firm's investments cost $100,000 and are expected to return $118,000 before taxes at the end of 1 year at which point it will be
A firm's investments cost $100,000 and are expected to return $118,000 before taxes at the end of 1 year at which point it will be closed down. The firm pays taxes at the marginal rate of 40%, and the appropriate cost of capital is 12%. What is the NPV of the firm?
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Financial Management Theory and Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
2nd Canadian edition
176517308, 978-0176517304
