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Question: What is Revised NPV? Investment $17,600,000 Discount rate: 11% Tax Rate: 21% Net Cash flow per un...

What is Revised NPV?

Investment $17,600,000

Discount rate: 11%

Tax Rate: 21%

Net Cash flow per unit:$235,000

If the project is unsuccessful it can be dismantled the first year.

After Tax Salvage: $10,400,000

Expected cash flows will be revised to 30 units per year or zero units with equal probability.

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