A project that returns before tax have negative npv

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Reference no: EM131241345

Assume a 30% corporate income tax.

Show that a project that returns 17% before-tax would have a negative NPV if it cost $100 today and if the appropriate after-tax cost of capital is 12%. budgeting if there are only corporate income taxes, and no other taxes or perfect market distortions.

Reference no: EM131241345

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