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4. You are buying a coffee roaster for $100,000 using debt of $80,000 at 6.25%. The new roaster will generate $100,000 of net income in

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4. You are buying a coffee roaster for $100,000 using debt of $80,000 at 6.25%. The new roaster will generate $100,000 of net income in each of the next two years. At the end of Year 2, the new roaster is sold for $40,000. What is the NPV and PI of the new roaster? New roaster 3 year MACRS asset WACC - 10% Tax -20% Rd -6.25% Last Year Year1 Year2 NWC 5,000 2,000 3,000 Capex 2,000 100,000 100,000 40 Net Income fort cbttrades

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