What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 21%, and the discount rate is 14%. Select one: a.−$15,560.04 b.$21,131.99 c.$3,411.14 d.$14,782.09
What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be depreciated for tax purposes straight-line over 6 years, the corporate tax rate is 21%, and the discount rate is 14%. Select one: a.−$15,560.04 b.$21,131.99 c.$3,411.14 d.$14,782.09
Chapter10: Project Cash Flows And Risk
Section: Chapter Questions
Problem 6PROB
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What is the NPV of a 6-year project that costs $100,000, has annual revenues of $50,000 and costs of $15,000? Assume the investment can be
Select one:
a.−$15,560.04
b.$21,131.99
c.$3,411.14
d.$14,782.09
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