Adjust the net present value analysis

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Reference no: EM1377560

The president of the corporation is not convinced that interest expense should be excluded from the evaluation of the net present value. He points out that, " Interest is a cash flow. You are supposed to discount cash flows. We borrowed money to completely finance this project. Why not discount interest expenditures? The president is so convinced that he asks you, the controller, to evaluate the net present value including the interest expense

How will you adjust the net present value analysis to compensate for inclusion of the interest expense ?

Reference no: EM1377560

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