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A project with a net present value of 10m incurs fixed costs of 3m every year for 9 years. If the firms weighted average cost

A project with a net present value of 10m incurs fixed costs of 3m every year for 9 years. If the firms weighted average cost of capital is 14% per annum and its marginal tax rate is 25%, the margin of safety in relation to the fixed costs is closest to:

  1. 67%
  2. 111%
  3. 106%
  4. 90%

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