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ABC limited is planning to invest in a project that costs $500,000. It is expected to generate taxable income (i.e., revenues minus expenses) of $200,000

ABC limited is planning to invest in a project that costs $500,000. It is expected to generate taxable income (i.e., revenues minus expenses) of $200,000 a year for 4 years before accounting for depreciation. The firms tax rate is 21% and its cost of capital is 15%. Calculate the after-tax cash flow and projects NPV, if the investment cannot be depreciated.

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