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Calculate the NPV for MK-8 satellite Tax is paid on profits at the end of the year in which it is earned satellite is depreciated
Calculate the NPV for MK-8 satellite
- Tax is paid on profits at the end of the year in which it is earned
- satellite is depreciated straight line down to a book value of zero over their entire useful life
| Cost of Satellite | 300 million |
| Launching cost | 185 million |
| Annual Revenue | 100 million |
| Annual operating cost | 21 million |
| Satellite Life | 20 years |
| Coporate Tax rate | 30% |
| Required rate of return | 9.8% |
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
