See how we rate investing products to write unbiased product reviews. The weighted average cost of capital (WACC ... business's corporate tax rate. A more complicated formula can be applied ...
The formula is: NPV = ∑ {After-Tax Cash Flow ÷ (1+r ... You also know the weighted average cost of capital (WACC), which is designated as “r” when solving for the NPV.
Esty, Benjamin C., and E. Scott Mayfield. "The Weighted Average Cost of Capital (WACC): Derivation, Intuition, and Applications." Harvard Business School Technical Note 221-106, June 2021.