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1- A company buys $2.5 million in equipment for a new project and plans on selling the fully depreciated equipment in 10 years for $200,000.

1- A company buys $2.5 million in equipment for a new project and plans on selling the fully depreciated equipment in 10 years for $200,000. The project has $40,000 in installation and transportation. The project requires $100,000 in additional inventories. The tax rate is 20%. What is the initial investment and terminal cash flow of the project?

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