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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=

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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. The borrowing rate is rp = 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 "O" 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 35% of the project's required investment? Answer is complete but not entirely correct. Adjusted present value $ (10.37) X

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