You are evaluating a project that will require an investment of $$18$ million that will be depreciated over a period of $18$ years. You are concerned that the corporate tax rate will increase during the life of the project.

$0\mathrm{.}9$

a$.$ Would this increase the accounting break$-$even point?

points

b$.$ Would it increase the NPV break$-$even point?

a$.$ Would this increase the accounting break$-$even point?

eBook

b$.$ Would it increase the NPV break$-$even point?