Mathematics · Financial Mathematics
A project has a lifespan of 4 years. Its net present value (NPV) is estimated at $400,000 when discounted at an annual rate of 10%. These estimations are based on expected cash inflows of $500,000 annually over the project's duration. The corporate tax rate is 30%, payable one year in arrear. What percentage change in the annual cash inflows will make the NPV exactly zero?
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