Value the project as if it is all equity financed tax

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Unformatted text preview: rs). Value the project as if it is all equity-financed. Tax 1. 2. See comments on MACRS depreciation and interest. If Reliable has profits on its remaining business, the tax loss should not be carried forward. Net Cash Flow 1. See comments on MACRS depreciation and interest. 2. Discount rate should reflect project characteristics; in general, it is not equivalent to the company’s borrowing rate. b. 1. 2 3. 4. 5. 6. Potential use of warehouse. Opportunity cost of building. Other working capital item...
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