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10. Consider the following project: expected sales of 10,000 units/year; price 55/unit; 3-yr life of the project; variable cost = $3/unit: fixed costs (excluding depreciation)

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10. Consider the following project: expected sales of 10,000 units/year; price 55/unit; 3-yr life of the project; variable cost = $3/unit: fixed costs (excluding depreciation) - $6,000/year, investment in fixed assets - $21.000 straight-line depreciation to zero salvage value; investment in NWC is $10,000; tax rate (t) - 34% Calculate NPV and IRR of the project if the discount rate is 10 percent? Answer:NPV IRR

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