Question: In the International Mulch and Compost example (Section 6.2), we assumed that losses on the project could be used to offset taxable profits elsewhere in

In the International Mulch and Compost example (Section 6.2), we assumed that losses on the project could be used to offset taxable profits elsewhere in the corporation. Suppose that the losses had to be carried forward and offset against future taxable profits from the project. How would the project NPV change? What is the value of the company’s ability to use the tax deductions immediately?

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