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# 14. What is the NPV of the project using the APV methodology? A. \$49,613.03 B. \$198,469 C. \$102,727.55 D. \$149,580.12 E. None of the above APV =...

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Why N=10

14 . What is the NPV of the project using the APV methodology ?&quot;
A. \$ 49 , 613. 03
B. \$198, 469
C . \$102 , 727.55
D. \$1 49, 580. 12
E . None of the above
APV = - Cost + Base- case NPV + NPV depreciation tax shield + NPV interest tax shield =
The project does not cost \$100 , 000 but rather \$98 , 937 . 49 = - \$100 , 000 + \$1, 062.51
( 100, 000 less the present value of after tax salvage value discounted at Yasser = 12% )
Base - case NPV
NPV depreciation tax shield
NPV interest tax shield
N = 10
PMIT = \$6. 800
PMIT = \$1, 632
PMIT = \$3 3, 000 -
= \$20, 000 x . 34
- . 06 X \$80, 000 x . 34
25, 000 x (\$5 - \$3 ) X ( 1 -. 34 )
N = 10
N = 10
V /YR = Passet = 12%/0';`
V/YR = Y'debt = 6%/0';`
I/YR = Y'debt = 6%/0;
PV = \$186, 457.36
PV depreciation tax shield*
PV interest tax shield]
\$50, 048.59
\$12, 01 1 . 66
APV = \$149, 580. 12 = _ \$98, 937. 49 + \$186, 457.36 + \$50, 048. 59+ \$12, 01 1. 60
Find fact pattern

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