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Consider a project lasting one year only. The Initial outlay is $1,000 and the expected Inflow is $1,280. The opportunity cost of capital is r=0.28.
Consider a project lasting one year only. The Initial outlay is $1,000 and the expected Inflow is $1,280. The opportunity cost of capital is r=0.28. The borrowing rate is rp = 0.88, and the tax shield per dollar of Interest is Te = 0.21. (Do not round Intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "o" wherever required.) a. What is the project's base-case NPV? Base-case NPV $ 0.00 b. What Is Its APV If the firm borrows 35% of the project's required Investment? Adjusted present value
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