1. How does a tax shield operate in setting up an after tax cash flow analysis? Be as specific as possible and provide examples. Be sure to cite any resources used.
2. A $50,000 investment is expected to save $17,513 per year, in today’s dollars. Assume N=4, inflation f=6%, and MARRC=20% (actual): a) What is the IRRR? b) What is the IRRC? c) Use the Real $ and MARRR to find NPW. d) Use the Actual $ and the MARRC to find NPW.