capital budgeting, Financial Accounting

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A project has a one-year life. It has an outlay of Rupee 1,500 million. At the end of Year 1, the net inflow is likely to be Rupee 2,200 million. The pretax cost of debt is 11%, the cost of equity is 19%, and the tax rate is 25%. Find the base-case NPV. What is the adjusted present value if the firm borrows 40% of its fund requirements?

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