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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,210. The opportunity cost of capital is r=0.21

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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,210. The opportunity cost of capital is r=0.21 The borrowing rate is ro 0.12, and the tax shield per dollar of interest is re- 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? Answer is complete and correct. Base-case NPV 0.00 b. What is its APV if the firm borrows 40% of the project's required investment? Answer is complete but not entirely correct. Adjusted present value $ (9.00)

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