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2. A proposed investment has a cost of $500. It will have a life of 10 years. The cost will be depreciated straight-line to a

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2. A proposed investment has a cost of $500. It will have a life of 10 years. The cost will be depreciated straight-line to a zero salvage value, and will be worth $50 at that time. Cash sales will be $300 per year and cash costs will run $100 per year. The firm will also need to invest $60 in net working capital at year, which will be retrieved at the end of the project. The appropriate discount rate is 5%, and the corporate tax rate is 30%. What is the net after- tax cash flow in the final year of operations (i.e.year 10)

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