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If net cash flows have been estimated on an after-tax basis, then: a. the opportunity cost of capital is not appropriate. b. they should be
If net cash flows have been estimated on an after-tax basis, then:
a. the opportunity cost of capital is not appropriate.
b. they should be discounted by the after-tax required rate of return.
c. they should be discounted by the before-tax required rate of return.
d. tax cash flows should be added back and net cash flows should be discounted by the before-tax required rate of return.
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