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A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,400 per year for six years.

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A project requires an initial investment of $100,000 and is expected to produce a cash inflow before tax of $26,400 per year for six years. Company A has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of 15% and can claim 100% bonus depreciation on the investment. Suppose the opportunity cost of capital is 9%. Ignore inflation. Question: Calculate project NPV for company B 15,664 14,558 O 2,687 0 2,123

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