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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,240. The opportunity cost of capital is r=0.24.
Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,240. The opportunity cost of capital is r=0.24. The borrowing rate is rD=0.08, and the tax shield per dollar of interest is Tc=0.21. ( Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) a. What is the project's base-case NPV? b. What is its APV if the firm borrows 34% of the project's required investment
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