Question: QUESTION 15 1.5 pomB SaveAnswer A twoyear project has been evaluated and has an NPV on an after tax basis of $2000. On reviewing the

 QUESTION 15 1.5 pomB SaveAnswer A twoyear project has been evaluated

QUESTION 15 1.5 pomB SaveAnswer A twoyear project has been evaluated and has an NPV on an after tax basis of $2000. On reviewing the analysis the Finance Manager found that depreciation had been omitted from the tax analysis. The allowable depreciation for tax purposes is $5001] for each year. Using a tax rate of 30% and and a discount rate after tax of 12% pa, determine the correct NPV for the project (to the nearest dollar}. QUESTION 15 1.5 pomB SaveAnswer which of the following are examples of "Real Options" [I The option to make followon investments if the immediare investment project succeeds. [I The option to abandon a project. [I The option to wait (and learn] before investing (option to delay} [I Flexibility in production facilities (the option to change strategy) [I Option to extend a contract

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