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7 The Juniper Network Company is considering a new 5 -year expansion project that requires an initial fixed investment of $2.5 milion. The fixed asset
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The Juniper Network Company is considering a new 5 -year expansion project that requires an initial fixed investment of $2.5 milion. The fixed asset will be deprecated straight line to zero over its five year tax life, after which time it will be worthless. The applicable tax rate is 22%. Estimated annual sales tor the project are $2.2mil ion with anncal costs of $1.15mm. The project will also require an initial investinent in NWC of $140.000 Which of the following approsches can be used to analyze the project? 1.NPV 2. IRR 3. Payback period 4. Immunization 5. Arbitage Portfolio theery is correct Step by Step Solution
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