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The jocob chemical company is considering building a new potassium sulfate plant.

The following cash outlays are required to complete the plant;

years cash outlay 0 $4000000 1 2000000 2 500000

jacob's cost of capital is 12% and ita marginal tax rate is 40%.

a). calculate the plant's net investment

b). what is the instlled cost of the plant for tax purposes?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92069392

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