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Hi , I question similar to this has been answered already. However, this specific iteration includes an additional cashflow in year 1 . I would

Hi , I question similar to this has been answered already. However, this specific iteration includes an additional cashflow in year 1. I would appreciate some assistance very much! I have also provided the professor's final answer. I am not sure how to get the same answer that he got. Thank you so much! Q2: YGR Inc., whose tax rate =35%, is considering a 15-year project which requires an initial cash
outlay of $670,000, and has annual cash flows of $72,000. An additional cash injection of $45,000 is
required in year 1 for extra materials. Should YGR Inc. undertake this project assuming the
opportunity cost of capital =10.25%(*assume the following: CCA =30% and the salvage value =
$80,000). Does your answer change if the risk of the project is under-estimated, and the discount
rate is subsequently adjusted by 1.75%?
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