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Please ignore the selected icon. Also explain why would be the answer you chose. Thank you! 8 If a project is expected to generate revenues

image text in transcribedPlease ignore the selected icon. Also explain why would be the answer you chose. Thank you!
8 If a project is expected to generate revenues of $50,000, expenditures of $20,000 and depreciation of $10,000 in each year of the project's life, how would you treat each of these in computing net present value (assuming an effective tax rate of 20%)? OA) You would compute the PV of after-tax net cash inflows of $30,000 plus a tax shield of $2,000 from OB) You would compute the PV of an net cash inflow (annuity) of $30,000 plus a tax shield of $10,000 from Ocy You would compute the PV of after-tax net cash inflows of $24,000 plus a tax shield of $2,000 from OD) You would compute the PV of after-tax net cash inflows of $24,000 less a tax shield of $2,000 from depreciation. depreciation depreciation. depreciation

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