The incremental after-tax cash flows for all-equity firm

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Reference no: EM131980822

Domestic APV

Consider a project where the timing and size of the incremental after-tax cash flows for an all-equity firm are:

Year 0: –$1,000

Year 1: $125

Year 2: $250

Year 3: $375

Year 4: $500

The unlevered cost of equity is r0 = 10%:

Calculate NPV by hand

Reference no: EM131980822

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