Corporate tax rate will increase during the life

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Reference no: EM132540773

You are evaluating a project that will require an investment of $12 million that will be depreciated over a period of 15 years. You are concerned that the corporate tax rate will increase during the life of the project.

a. Would this increase the accounting break-even point?

-Yes

-No

b. Would it increase the NPV break-even point?

-Yes

-No

Reference no: EM132540773

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