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Assessing an investment opportunity in a country

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Reference no: EM131713177

Question: Management is assessing an investment opportunity that takes place in a country where the company currently has no activity. This project is expected to generate a negative taxable income during several early years, which would cause the postponement of interest tax shields. How should the management take this into account if the company uses the standard WACC method to value its projects?

Reference no: EM131713177

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