Tag: NPV

The project cost of capital is 7.7%. The tax rate is 17%. How much lower is the project NPV calculated based on expected cash flows vs the project NPV based on expected NI?

Assignment Question An all equity financed project has a 5-year life and is expected to generate the following net income: year 1: $52 year 2: $71 year 3: $88 year 4: $105 year 5: $123 The project has no working capital. The production equipment for the project was purchased at