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Problem 19-14 APV Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,250. The opportunity cost of

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Problem 19-14 APV Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,250. The opportunity cost of capital is r=0.25. The borrowing rate is ro - 0.10, and the tax shield per dollar of interest is Te - 0.21. (Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) a. What is the project's base-case NPV? Base-case NPV b. What is its APV if the firm borrows 32% of the project's required investment? Adjusted present value

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