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#17 A firm has projected the following financials for a possible project: YEAR Sales 135,920.00 135,920.00 135,920.00 135,920.00 135,920.00 Cost of Goods 62,490.00 62,490.00 62,490.00

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#17 A firm has projected the following financials for a possible project: YEAR Sales 135,920.00 135,920.00 135,920.00 135,920.00 135,920.00 Cost of Goods 62,490.00 62,490.00 62,490.00 62,490.00 62,490.00 S&A 30,000.00 30,000.00 30,000.00 30,000.00 30,000.00 Depreciation 20,333.80 551.00 20,333.80 551.00 20,333.80 551.00 20,333.80 551.00 20,333.80 551.00 Investment in NWC 1,172.00 Investment in Gross PPE 101,669.00 The firm has a capital structure of 45.00% debt and 55.00% equity. The cost of debt is 8.00%, while the cost of equity is estimated at 14.00%. The tax rate facing the firm is 37.00%. (Assume that you can't recover the final NWC position in year 5. i.e. only consider the change in NWC for each year) What is the NPV of the project? (Hint: Be careful about rounding the WACC here!) Submit Answer format: Currency: Round to: 2 decimal places

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