Question: Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,230. The opportunity cost of capital is p=

Consider a project lasting one year only. The initial outlay is

Consider a project lasting one year only. The initial outlay is $1,000 and the expected inflow is $1,230. The opportunity cost of capital is p= 0.23. The borrowing rate is 0.09, and the tax shield per dollar of interest is Tc = 0.21. ( Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "O" wherever required.) rD a. What is the project's base-case NPV? Answer is complete and correct. Base-case NPV $ 0.00 b. What is its APV if the firm borrows 33% of the project's required investment? X Answer is complete but not entirely correct. Adjusted present value $ 5.07 x

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