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A project requires an initial investment of $ 1 0 0 , 0 0 0 and is expected to produce a cash inflow before tax
A project requires an initial investment of $ and is expected to produce a cash inflow before tax of $ per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company pays corporate taxes at a rate of and can claim bonus depreciation on the investment. Suppose the opportunity cost of capital is Ignore inflation. a Calculate project NPV for each company. b What is the IRR of the aftertax cash flows for each company? Complete this question by entering your answers in the tabs below. Required A Required B Calculate prot round intermediate calculations. Round your answers to the nearest whole dollar amount. NPV Company A Company B IRR Required A Required B Pleae give me with table if posdible
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