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help with the NPV and IRR for company B A project requires an initial investment of $100,000 and is expected to produce a cash inflow

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A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,100 per year for five years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 21% and can claim 100% bonus depreciation on the investment, Suppose the opportunity cost of capital is 8%. Ignore Inflation a. Calculate project NPV for each company. (Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) NPV 4,210 5 Company A Company B b. What is the IRR of the after tax cash flows for each compony? (Do not round Intermediate calculations. Enter your answers as a percent rounded to 1 decimal places.) IRR 9.65 Company A Company 56

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