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22 points Save Awer As a manager of XYZ Corp you are considering launching a project Pl to expand the production of a new construction

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22 points Save Awer As a manager of XYZ Corp you are considering launching a project Pl to expand the production of a new construction chemical. The production line will be placed in a warehouse that is currently idle and the company could have otherwise rented out for $35.000 per year XYZ wil borrow $200.000 from Amarillo National Bank at an interest rate of 5% per annum for the project Your subordinates forecast the financials for the project in Year 2 as follows sales w 100.000 cost of goods sold it be 15.000 seling general administrative expense will be 6,000 of which 1,000 is overhead that will be incurred even if the project is not accepted. annual depreciation will be 25,000 interest costs will be $30.000 suling from the project average tax rate is 2016 maroinal tax rates 30% change in networking capital WC wil be 12.000 9 years NW 10,000 current year's NWC 22.000) You think back to your halcyon days in finance class and reachers more work to be done to compute the unlevered free cash flows. Your estimate of the unlevered FCF in Year 2 (NOT Year, thus no capital expenditure spending in Year 2) is Hint The financials projected by your subordinates may overstate the cost that should be attributed to the project or understate the cost that should be attributed to the project Instruction Type ONLY your numerical and in a unit of dollars NOS needed No com Round it to the nearest Integer

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