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3. [25 pointy] Yout fin is condelering cntering a tew product line, ginmos. You estimate that each to prodpee and ficed operatiog costs are 530,000

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3. [25 pointy] Yout fin is condelering cntering a tew product line, ginmos. You estimate that each to prodpee and ficed operatiog costs are 530,000 per yeat. The needed equipment costs \$140000 to purchave, it will be depecciated straight tine over 7 yeans, and it will be sold as the end of the peoject (Year 5 ) at a estinated market value of 550,000 . The project will also require an initial investenent of $25,000 in net working capolal, and it wall be fally recovered at the cnd of the projoct. The requelired rate of ecturn on this project is 14. chs and your - Enler dolla values to nearest 51. - Cleaty distinguish nepative values for outfous of exsh from the firm: a) What is the peoject's Mrerating Cash Fow for year 27 b) What is the project's Canital Fispraditure for year $ ? CAPFEY: c) What is the peoject's Fros Cash Flonv for ycars 0,2 and 5% : FCF0O FCFs: 3. [25 pointy] Yout fin is condelering cntering a tew product line, ginmos. You estimate that each to prodpee and ficed operatiog costs are 530,000 per yeat. The needed equipment costs \$140000 to purchave, it will be depecciated straight tine over 7 yeans, and it will be sold as the end of the peoject (Year 5 ) at a estinated market value of 550,000 . The project will also require an initial investenent of $25,000 in net working capolal, and it wall be fally recovered at the cnd of the projoct. The requelired rate of ecturn on this project is 14. chs and your - Enler dolla values to nearest 51. - Cleaty distinguish nepative values for outfous of exsh from the firm: a) What is the peoject's Mrerating Cash Fow for year 27 b) What is the project's Canital Fispraditure for year $ ? CAPFEY: c) What is the peoject's Fros Cash Flonv for ycars 0,2 and 5% : FCF0O FCFs

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