Question
(b) Determine the effect of depreciation and taxes. Calculatei*for the PW as follows: CFBT (0) = -150,000 + 5,000(P/F , i* ,1) + 25,000(P/F ,
(b) Determine the effect of depreciation and taxes.
Calculatei*for the PW as follows:
CFBT (0) = -150,000 + 5,000(P/F , i* ,1) + 25,000(P/F , i* ,2) + 45,000(P/F , i* ,3) + 75,000(P/F , i* ,4)
Before tax i* = 4.4%
how do I solve for i *?
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Managerial Economics
Authors: Paul Keat, Philip K Young, Steve Erfle
7th edition
0133020266, 978-0133020267
