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3. Deciduous Inc. is deciding whether or not to enter the aluminum siding business. Projected sales, total net working capital (NWC) requirements, and capital investments

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3. Deciduous Inc. is deciding whether or not to enter the aluminum siding business. Projected sales, total net working capital (NWC) requirements, and capital investments are: Year Sales NWC Investment $ 0 $400 $20,000 5,000 500 6,000 500 9,000 700 4-6 10,000 700 Variable costs are 60% of sales, and fixed costs are negligible. The $20,000 in production equipment will be depreciated on a straight-line basis, to a value of zero, over a five-year period. The equipment will actually be worth $10,000 if salvaged in six years. The required rate of return is 10% and the firm's tax rate is 34%. Should Deciduous embark on this new line of business

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