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3 points For the incass exercise in the slide 4 at the economic break even level of quantity so, what are the signs of the

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3 points For the incass exercise in the slide 4 at the economic break even level of quantity so, what are the signs of the following present was not the question as the total present value of each components. If there are changes in NWC in a five year project, what is the total PV of cash flow impact of change NWC) Paash flow impact of capital expenditure) Picash flow impact of change in NW) Picash flow impact of unleveredet income) Picash flow impact of depreciacion OA, Oct. As the finance manager of a company, you are presented with the following project. The company is considering the purchase of a new piece of equipment which would cost $200,000. This equipment will have a five-year useful life and have a salvage value of $o at the end of the five-year period. It is estimated that the new equipment will be able to produce 10,000 shelves per year. the incremental overhead for running the equipment will be $20,000 per year. they can sell the shelves for $25 each. the cost of sales is $15 per shelf Net Working Capital requirements for the project are as follows: Year O = $10,000 Year 1 = $15,000 Year 2 = $17,000 Year 3 = $15 000 Year 4 = $10,000 The company has a 30% marginal tax rate and a cost of capital of 1596. Would you accept this project (support your answer with NPV)

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