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NARRBEGIN: Exhibit 9-1
Exhibit 9-1
A project requires an initial investment in equipment and machinery of $10 million.The equipment is expected to have a 5-year lifetime with no salvage value and will be depreciated on a straight-line basis.The project is expected to generate revenues of $5.1 million each year for the 5 years and have operating expenses (not including depreciation) amounting to 1/3 of revenues.
-Refer to Exhibit 9-1.Assume the tax rate is 40%,and the cost of capital is 10%.What is the present value of cash inflows from year 1 to year 5? What percentage of this present value is attributed to the tax benefits accruing from depreciation?
Resilient
The ability to quickly recover from difficulties; toughness or the capacity to bounce back from adversity.
Give Up
The act of stopping an attempt or ceasing to engage in an activity or effort, often due to perceived difficulty or lack of success.
Emotional Awareness
The ability to recognize and understand one's own emotions and those of others.
Perceiving Emotions
The ability to recognize and understand emotions in oneself and others, typically considered a crucial part of emotional intelligence.
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