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Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,300. The opportunity cost of capital is r

Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,300. The opportunity cost of capital is r = 0.30. The borrowing rate is rD = 0.10, 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 "0" wherever required.) a. What is the projects base-case NPV? b. What is its APV if the firm borrows 40% of the projects required investment?

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