Please assist on question 5. What is the Base Case NPV? Please see my workings and advise where I went wrong 1.Base NPV $130m 2. (a) Interest on Tax shield = Tax rate x Pre tax borrowing rate x Debt = 0.25 x 0.05 x $200 =$2.5 2.(b) PV of tax shield = Interest Tax Shield / Pre tax borrowing =$2.5/0.05 =$50 3.APV = Base case NPV + PV of tax shield = $130+$50 =$180