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Npv of the project

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Reference no: EM133110840

Consider a firm that has invested in a 5-year project. It faces a 40% corporate tax rate and its investment belongs to the CCA class with a 30% depreciation rate. By how much the NPV of the project will increase if the firm were able to use its inventory more efficiently and reduce the required NWC by $20,000? Assume the project's discount rate is 12%.

Reference no: EM133110840

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