Question: 4. The controller is worried about tax increases and estimates that the tax rate with be raised to Maryland state) in year 4. Also there


4. The controller is worried about tax increases and estimates that the tax rate with be raised to Maryland state) in year 4. Also there is a concern that expenses are understated. He asks, "Whi the NPV calculation if the cash tax expenses come in 2% higher than estimated and the tax rate year 4?" This will allow a subjective evaluation of the project risk. Calculate a new cash flow til expenses 10% higher than those in Table 2 and with a 50% tax rate. Use Table 3
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