What is the project base-case npv

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Consider a project lasting one year only. The initial outlay is $1,500 and the expected inflow is $1,800. The opportunity cost of capital is r = .20. The borrowing rate is rD = .10, and the tax shield per dollar of interest is Tc = .40. (Leave no cells blank - be certain to enter "0" wherever required. A negative answer should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

a. What is the project's base-case NPV?

Base-case NPV             $

b. What is its APV if the firm borrows 35% of the project's required investment?

Adjusted present value  $

Reference no: EM131542036

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