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i need the answer quickly Q 3: THE TATA CORPORATION, HAS 10% AFTER TAX COST OF CAPITAL AND 50 % TAX RATE. THEY ARE EVALUATING
i need the answer quickly
Q 3: THE TATA CORPORATION, HAS 10% AFTER TAX COST OF CAPITAL AND 50 % TAX RATE. THEY ARE EVALUATING A PROJECT HAVING A COST OF RS/. 200,000 AND WHICH WILL REQUIRE AN INCREASE IN THE INVENTORY LEVEL BY RS/.100,000 OVER ITS LIFE. THE PROJECT WILL GENERATE THE ADDITIONAL SALES OF RS/. 1,50,000 AND WILL REQUIRE THE CASH RUNNING EXPENSES OF RS/. 30000 IN EACH YEAR OF ITS 5 YEARS LIFE. THE DEPRICIATION WILL BE CHARGED ON THE STRAIGHT LINE BASIS. CALCULATE THE NPV AND IRR FOR THE PROJECTStep by Step Solution
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