Use the Table for the Question(s)below

question 58

Multiple Choice

Use the table for the question(s) below.

-You own a Canadian firm that invests in a U.S.project with the cash flows shown in the table above.Given a corporate tax rate of 35% and a WACC of 6.9%,what is the NPV of the investment?

• A)$16 million CAD
• B)$10.5 million CAD
• C)$1.1 million CAD
• D)$7.5 million CAD
• E)-$1.1 million CAD

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Definitions:

Mg

Mg is the chemical symbol for magnesium, a lightweight, silvery-white metallic element that is essential for human biology.

K

The symbol for potassium, an essential mineral and electrolyte in the human body, or alternatively, the symbol for the kelvin, a unit of temperature.

Na

The chemical symbol for Sodium, an essential element that plays a key role in nerve function and blood pressure regulation.

Subscript

A character or symbol set or printed below the normal line of text, often used in chemical formulas to indicate the number of atoms.