Net present value that influence ruiz selection


Question: The company has a 40 percent marginal tax rate and requires a 12 percent after tax rate of return.

1) Calculate the net present value of each of the three alternatives. Recognize all applicable tax implications. Which alternative should Ruiz select?

2) What are some factors besides the net present value that should influence Ruiz's selection?


Attachment:- Net present values.rar

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