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4.A project requires an initial investment of $100,000 and is expected to produce a cash,inflow before tax of $26,000 per year for five years. Company A has substantial accumulated,tax losses and is unlikely to pay taxes in the foreseeable future. Company B,pays corporate taxes at a rate of 35 percent and can depreciate the investment for tax,purposes using the five-year MACRS tax depreciation schedule. Suppose the opportunity,cost of capital is 8 percent. Ignore inflation.,a. Calculate project NPV for each company.,b. What is the IRR of the after-tax cash flows for each company? What does comparison,of the IRRs suggest is the effective corporate tax rate?,