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Determining the returns after-tax cash flow

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Reference no: EM131411887

How do you work this problem and what is the solution?

Your company is looking at an investment that today costs $4,152 and returns after-tax cash flow exactly one year, two years, and three years from today, respectively, equal to $1,600 , $2,100 and $2,700. The company intends to finance the investment at a rate of 12.9% and to repay the loan (principal and interest) with the investment cash flows as they occur. How much economic profit will the investment create?

Reference no: EM131411887

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