Use the Table for the Question(s)below

question 93

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 40% and a WACC of 8.9%,what is the NPV of the investment?

• A)$9.3 million CAD
• B)$0.1 million CAD
• C)-$0.1 million CAD
• D)$7.5 million CAD
• E)$7.2 million CAD

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Definitions:

Confidence Interval Estimate

Confidence Interval Estimate is an estimation method that calculates a range of possible values for an unknown population parameter, based on sample data and a specified confidence level.

Population Proportions

It denotes the fraction or percentage of a population having a particular property or attribute.

Sample Proportions

Measures that represent the fraction of the sample that exhibits a particular attribute or characteristic.

Population Proportions

Fractions or percentages of a population that fall into various categories, often used in polling and survey results.