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Consider a project lasting one year only. The initial outlay is $1,200 and the expected inflow is $1,450. The opportunity cost of capital is22. The
Consider a project lasting one year only. The initial outlay is $1,200 and the expected inflow is $1,450. The opportunity cost of capital is22. The borrowing rate is rp 12, and the tax shield per dollar of interest is Tc = 34 Leave no cells blank-be certain to enter"0" wherever required. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.) a. What is the project's base-case NPV? Base-case NPV b. What is its APV if the firm borrows 32% of the project's required investment? Adusted present value
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