Question: 14. APV Consider a project lasting one year only. The initial outlay is $1,000, and the expected inflow is $1,200. The opportunity cost of capital

14. APV Consider a project lasting one year only. The initial outlay is $1,000, and the expected inflow is $1,200. The opportunity cost of capital is r=.20. The borrowing rate is rD=.10, and the tax shield per dollar of interest is Tc=.21. a. What is the project's base-case NPV? b. What is its APV if the firm borrows 30% of the project's required investment

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