When assembling the cash flows to calculate an NPV or IRR, the projects after-tax interest expenses should

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When assembling the cash flows to calculate an NPV or IRR, the project’s after-tax interest expenses should be subtracted from the cash flows for:

a. The NPV calculation, but not the IRR calculation.

b. The IRR calculation, but not the NPV calculation.

c. Both the NPV calculation and the IRR calculation.

d. Neither the NPV calculation nor the IRR calculation.

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Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Question Posted: Jun 08, 2012 01:10 AM

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When assembling the cash flows to calculate an NPV or IRR, the projects after-tax interest expenses should

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d is correct Financing costs are ...View the full answer

Fundamentals of corporate finance

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