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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

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