A project costs $30,000 and is expected to return $36,000 next year. One-year taxable bonds of similar risk are yielding 10% while similar-risk munis are yielding 8%. Your marginal tax rate
Is 30%. What is the NPV of this project? Round your answer to the nearest dollar
A) $1,091
B) $2,386
C) $1,963
D) $1,667
Correct Answer:
Verified
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