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If a company enjoys a tax reduction for whatever the reason for, say, our project years (5 years). Should we adjust the terminal year tax expense to the normal level in order to obtain the correct terminal value? EX, the effective tax rate for t+1 till t+5 would be 10%; however, it would be normal say 35% after that. Should we use 35% to calculate the tax expense for the terminal year or still multiply the growth rate by the t+5 NOPAT? Thanks. Read More