What the present value of the after-tax operating cash flows

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Question - XYZ is considering new ten-year project that will generate additional sales revenue of $185968 per year. The associated costs are $109993 per year. The project is somewhat riskier than the company's current operations, and hence requires a risk premium of 2.77%. The company's cost of capital is 14.31 and marginal tax rate is 40 percent. What the present value of the after-tax operating cash flows?

Reference no: EM133013958

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