Tax Effects of High-Technology R&D Projects Financing Through Debt Capital
9 Pages Posted: 13 Oct 2013
Date Written: October 12, 2013
Abstract
Cooperative effect of depreciation (D), tax (T) and debt (Debt) leverages on NPV of a high-technology innovative project has been analyzed. It has been shown that for projects having a high DTD leverage, the project NPV first grows and then declines with an increase in the income tax rate, which is indicative of an optimum tax rate available for the investor.
Keywords: tax effect, high-technology R&D project, project NPV, DTD leverage, optimum tax rate
JEL Classification: C38, C58, D04, D92, H21, O32
Suggested Citation: Suggested Citation
Trifonov, Yuriy and Yashin, Sergey and Koshelev, Egor, Tax Effects of High-Technology R&D Projects Financing Through Debt Capital (October 12, 2013). Available at SSRN: https://ssrn.com/abstract=2339622 or http://dx.doi.org/10.2139/ssrn.2339622
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