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Homework answers / question archive / Assume a 5-year project has a base-case NPV of $213,000, a tax rate of 34%, and a cost of capital of 14%

Assume a 5-year project has a base-case NPV of $213,000, a tax rate of 34%, and a cost of capital of 14%

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Assume a 5-year project has a base-case NPV of $213,000, a tax rate of 34%, and a cost of capital of 14%. What will be the worst-case if the annual after-tax cash flows are reduced in that scenario by $35,000 for each of the 5 years?

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