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Course Learning Assessment 1 - CLO 1, 2, 3, 4, 5, 6 7. Please see the rubrics for grading criteria. and book value of the
Course Learning Assessment 1 - CLO 1, 2, 3, 4, 5, 6 7. Please see the rubrics for grading criteria. and book value of the investment. The cost of capital is 20%. 1. Please verify that the information above yields NPV=0. 2. If you decide to terminate the project in Year 2, what would be the NPV of the project? 3. Suppose that the government now changes tax depreciation to allow a 100\% write-off in Year 1 . How does this affect your answers to parts a and b above? 4. Would it now make sense to terminate the project after two rather than three years? 5. How would your answers change if the corporate income tax were abolished entirely
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