This preview shows page 1. Sign up to view the full content.
Unformatted text preview: rs). Value the project as if it is all equity-financed. Tax
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
See comments on MACRS depreciation and interest.
Discount rate should reflect project characteristics; in general, it is not
equivalent to the company’s borrowing rate.
6. Potential use of warehouse.
Opportunity cost of building.
Other working capital item...
View Full Document
- Spring '14