Question
A project requires a $3 million investment in net working capital (NWC) today, and will be fully recovered in 10 years. What is the PV
A project requires a $3 million investment in net working capital (NWC) today, and will be fully recovered in 10 years. What is the PV of the NWC cash flows if r = 0.12 per annum?
A firm depreciated its assets with regard to an investment to $0.00 book value by the end of the project's 10 year life. However, the firm expects to sale the assets for $500,000 in 10 years. What is the PV of the after-tax salvage value if r = 10% per year, and the firm's tax rate is 32%?
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
