A Project Costs $20,000 Today and Is Expected to Return

question 27

Multiple Choice

A project costs $20,000 today and is expected to return 20% before corporate income taxes. The appropriate after-tax cost of capital is 12%, and the firm pays taxes at the marginal rate of 35%.
What is the project's NPV? Round your answer to the nearest dollar.

• A)$179
• B)$2,679
• C)$1,429
• D)none of the above

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A seasonal reversing wind accompanied by changes in precipitation, significant in South Asian regions and affecting agriculture and lifestyle.

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Areas of the Earth characterized by distinct weather patterns and atmospheric conditions over a long period.

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