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Use the Table for the Question(s)below

Question 58

Multiple Choice

Use the table for the question(s) below.
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 35% and a WACC of 6.9%,what is the NPV of the investment? A) $16 million CAD B) $10.5 million CAD C) $1.1 million CAD D) $7.5 million CAD E) -$1.1 million CAD
-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 35% and a WACC of 6.9%,what is the NPV of the investment?


A) $16 million CAD
B) $10.5 million CAD
C) $1.1 million CAD
D) $7.5 million CAD
E) -$1.1 million CAD

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