Analogous to the cash flows in Table 13 7, a 10 instead of a 12 cost of capital on the tax liability would increase the NPV of the tax obligation from $46 77 to Therefore, the project value would decrease by $3 39 NPV tax liability $14 $2 $2 $12 1 1 1 1 1 13 1 14 $22 $22 1 15 1 16 $50 16...

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Analogous to the cash flows in Table 13.7, a 10% instead of a 12% cost of capital

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Analogous to the cash flows in Table 13.7, a 10% instead of a 12% cost of capital on the tax liability would increase the NPV of the tax obligation from $46.77 to image text in transcribed

Therefore, the project value would decrease by $3.39.

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Corporate Finance An Introduction

ISBN: 9780321277992

1st Edition

Authors: Ivo Welch

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Question Posted: Oct 26, 2024 04:01 AM

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Analogous to the cash flows in Table 13.7, a 10% instead of a 12% cost of capital

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NPV tax liability $14 $2 $2 $12 = + 1.1 1.1 1.13 1.14 + $22 $22 1.15 1.16 $50.16

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Corporate Finance An Introduction

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