To determine the effect of income taxes on a project,multiply the net present value of the project by one minus the tax rate.

Name: To determine the effect of income taxes on a project,multiply the net present value of the project by one minus the tax rate.
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To determine the effect of income taxes on a project, you adjust the project's cash flows for taxes and then calculate the net present value (NPV) of these after-tax cash flows, rather than multiplying the NPV by one minus the tax rate.

To Determine the Effect of Income Taxes on a Project,multiply