The Long-Term Financing Company has identified an alternative project that is similar to a project currently under

Question:

The Long-Term Financing Company has identified an alternative project that is similar to a project currently under consideration in all respects except one. That is, the new project will reduce the need for working capital by $10,000 during the 30-year life of the project. The is 18 percent and the marginal corporate tax rate for the firm is 34 percent. What is the after-tax present value of this new alternative project?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...