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Assume that the initial outlay and depreciable base for a new project is 100,000. It is a 3-year asset for tax purposes and the tax
Assume that the initial outlay and depreciable base for a new project is 100,000. It is a 3-year asset for tax purposes and the tax rate is 35%. This project is expected to increase revenue by 30,000 each year for the next 3 years and then will be sold at the end of year three for 10,000. Assuming a discount rate of 5% What is the NPV
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