Review of Domestic Capital Budgeting For our purposes it is necessary to expand the NPV equation CF=(R-0C1-D-l,)(1-x)+D1+l1(1-x) (M1+D2+1(1-τ (R-OC - D(1-T)+D NO1(1-)+D =(R-OC1)(1-)+D =OCF(1-)+D McGraw-Hilylrwoin 17-6 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 17-6 Review of Domestic Capital Budgeting For our purposes it is necessary to expand the NPV equation. CF (R OC D I )(1 τ) D I (1 τ) t = t − t − t − t − + t + t − (NI D I (1 τ) = t + t + t − t t Dt = (R −OC − Dτ)(1− τ) + t Dt = NOI (1− τ) + t t t = (R −OC )(1− τ) + τD t t = OCF (1− τ) + τD