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6). Consider the following table and information, and assess the NPV of the project. Be sure to show work. The project will last for 4

6). Consider the following table and information, and assess the NPV of the project. Be sure to show work. The project will last for 4 years, and have the following number of sales in the year indicated.

Year

Unit Sales

1

20000

2

35000

3

10000

4

9000

The units will sell for 65 dollars each and cost 25 dollars to make. Net working capital will be 20% of next years unit sales. Immediate plant investments will total $250,000. The investment will be depreciated using the 3 year MACRS schedule. After 4 years, the economic and book value of the plant is 0. Assume a tax rate of 35%, and a cost of capital of 18%.

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