answer the question: Suppose you are the risk manager for a company considering a $4,800,000 investment in a new 12-year project. The $4.

answer the question:Suppose you are the risk manager for a company considering a $4,800,000 investment in a new 12-year project. The $4.8 million cost of the project will be depreciated on a straight-line basis over 10 years. The project is expected to generate positive operating cash flows equal to $1,350,000 per year (not including the effect of depreciation or taxes). The company’s tax rate is 25%. Ignoring any risk management considerations, evaluate the project by calculating its net present value and internal rate of return. Assume the company has a required return of 14%.

PVCOCalculation of DepreciationLife (Years)DepreciationTax RateDTS 4,800,000 Operating cash flowsTax on cash flowsOperating cash flows post tax 1,350,000337,5001,012,500 Yearly cash flows…

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