A project costs $25,000 and will return $27,500 next year. Taxable bonds that are similar in risk to the project return 11% while similar-risk, tax-exempt bonds are yielding 8%. You pay taxes
At the marginal rate of 25%. What is the NPV of this project? Round your answer to the
Nearest dollar.
A) -$225
B) -$173
C) -$116
D) +$463
Correct Answer:
Verified
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