What is the after-tax present value of this new alternative


The Long-Term Financing Company has identified an alternative project that is similar to a project currently under consideration in all respects except one. That is, the new project will reduce the need for working capital by $10,000 during the 30-year life of the project. The cost of capital is 18 percent, and the marginal corporate tax rate for the firm is 34 percent.

What is the after-tax present value of this new alternative project? (Round answer to 2 decimal places, e.g. 15.25.)

After-tax present value of new alternative project $________________

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Financial Management: What is the after-tax present value of this new alternative
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