Chartered Financial Analyst Level 1
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An analyst evaluates a company's capital investment with the following details:
- Initial cash outlay:
$90 million
- Annual before-tax cash flows (Year 1 to Year 6):
$50 million
- Marginal tax rate: 15%
- Required rate of return: 12%
The net present value (NPV) of the investment is closest to:
An analyst evaluates a company's capital investment with the following details:
- Initial cash outlay:
$90million - Annual before-tax cash flows (Year 1 to Year 6):
$50million - Marginal tax rate: 15%
- Required rate of return: 12% The net present value (NPV) of the investment is closest to:
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Last updated: December 23, 2025 at 14:04A
$85 million.
62.5%
B
$116 million.
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