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Suppose you conducted a CBA for a project, which has an expected life of 5 years. The Excel File below contains all the information of
Suppose you conducted a CBA for a project, which has an expected life of 5 years. The Excel File below contains all the information of this project. The Private IRR, which is highlighted in the file, is 19%. What is the maximum profit tax rate, if Private IRR is at least 25% ? Hint: You are required to use the "Goal Seek" command in Excel to answer this question. (Provide your answer to 2 decimal places. Do not include "\%" in your response.) \begin{tabular}{|l|l|l|l|l|l|} \hline Section 1: Project Data & & & \\ \hline Capital Cost & $120 & Product Price & $13 & Tax Rate & 30% \\ \hline Output Flow & 12 & Wage & $5 & Dis. Rate & 5% \\ \hline Labour Input & 20 & Shadow Wage & $3 & Dis. rate & 10% \\ \hline & & Pollution Cost & $10 & & \\ \hline \end{tabular} Suppose you conducted a CBA for a project, which has an expected life of 5 years. The Excel File below contains all the information of this project. The Private IRR, which is highlighted in the file, is 19%. What is the maximum profit tax rate, if Private IRR is at least 25% ? Hint: You are required to use the "Goal Seek" command in Excel to answer this question. (Provide your answer to 2 decimal places. Do not include "\%" in your response.) \begin{tabular}{|l|l|l|l|l|l|} \hline Section 1: Project Data & & & \\ \hline Capital Cost & $120 & Product Price & $13 & Tax Rate & 30% \\ \hline Output Flow & 12 & Wage & $5 & Dis. Rate & 5% \\ \hline Labour Input & 20 & Shadow Wage & $3 & Dis. rate & 10% \\ \hline & & Pollution Cost & $10 & & \\ \hline \end{tabular}
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