Question: 1.) Consider a project lasting one year only. The initial outlay is $2,700 and the expected inflow is $2,900. The opportunity cost of capital is

1.)

Consider a project lasting one year only. The initial outlay is $2,700 and the expected inflow is $2,900. The opportunity cost of capital is r = 0.22. The borrowing rate is r_D = 0.12, and the tax shield per dollar of interest is T_c = 0.40.

a.	What is the project

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