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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,260. The opportunity cost of capital is r=0.26.

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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,260. The opportunity cost of capital is r=0.26. The borrowing rate is rD=0.12, 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. a. What is the project's base-case NPV? b. What is its APV if the firm borrows 50% of the project's required investment

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