How does the tax shield of debt affect project valuation


Qusetion: The question is follow : How does the tax shield of debt affect project valuation under the standard free-cash flow method of computing NPV as opposed to the APV method? What assumptions are used in both. Are any of the assumptions likely to be violated when using these methods in practical calculations? Which method would be preferable?

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Finance Basics: How does the tax shield of debt affect project valuation
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