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Consider a project lasting one year only. The initial outlay is $ 1 , 0 0 0 and the expected inflow is $ 1 ,

Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,250. The opportunity cost of capital is r =0.25. The borrowing rate is rD=0.11, and the tax shield per dollar of interest is Tc=0.21.
Note: Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.
What is the projects base-case NPV?
What is its APV if the firm borrows 45% of the projects required investment?

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