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The investments of a firm cost $80,000 and they are expected to return $115,000 before taxes...

The investments of a firm cost $80,000 and they are expected to return $115,000 before taxes at the end of 1 year. The firm is financed with $70,000 debt and expected rate of return of 5%. The firm pays taxes at the marginal rate of 40% and appropriate cost of capital 8%. Q1: What is the NPV of the firm if it is 100% financed with equity? Q2. What is the firm's adjusted present value?.

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