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 r

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 r = 0.23. The borrowing rate is r_D = 0.08, and the tax shield per dollar of interest is T_c = 0.21. ( Do not round intermediate calculations. Round your answers to 2 decimal places. Leave no cells blank - be certain to enter "0" wherever required.) a. What is the projects base-case NPV?

Base-case NPV:

b. What is its APV if the firm borrows 30% of the projects required investment?

Adjusted present value:

Please show calculations. Thanks.

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