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Taco Bell is evaluating a project that requires 10 Million in initial investment. The company cost of capital and tax rate is 12 percent and
Taco Bell is evaluating a project that requires 10 Million in initial investment. The company cost of capital and tax rate is 12 percent and 40 percent respectively. Assuming that the project earns an after tax cash flow of 1 Million during years 1 to 5 and 3 million during years 11 to 15. How much after tax operating cash flow should the project earn annually (equal annual earnings) during years 6 to 10 to have an NPV of 10 Million?
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