Assume a project costs INR 1200 Crore, has a lifetime of 10 years, and SV=INR 200 Crore
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Assume a project costs INR 1200 Crore, has a lifetime of 10 years, and SV=INR 200 Crore at the end of 10 years. The company uses straight-line depreciation and the corporate tax rate is 50%. A new machine generates revenue of INR 400 Crore yearly for the next ten years and has expenses of INR 150 Crore yearly for the next ten years. The cost of capital is 10%.
Related Book For
Corporate Finance
ISBN: 978-0077861759
10th edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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