Question: Problem 6 - 1 9 Project NPV and IRR A project requires an initial investment of ( $ 1 0 0 , 0

Problem 6-19 Project NPV and IRR A project requires an initial investment of \(\$ 100,000\) and is expected to produce a cash inflow before tax of \(\$ 27,700\) per year for five years. Company \( A \) has substantial accumulated tax losses and is unlikely to pay taxes in the foreseeable future. Company B pays corporate taxes at a rate of \(21\%\) and can claim \(100\%\) bonus depreciation on the investment. Suppose the opportunity cost of capital is \(11\%\). Ignore inflation. a. Calculate project NPV for each company. b. What is the IRR of the after-tax cash flows for each company? Complete this question by entering your answers in the tabs below. Calculate project NPV for each company. Note: Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.
Problem 6 - 1 9 Project NPV and IRR A project

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