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8. A project's initial Investment is $200,000 straight line depreciated to $20,000 salvage value over 5 year life. Projected sales: 2,500 units @ $88 /

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8. A project's initial Investment is $200,000 straight line depreciated to $20,000 salvage value over 5 year life. Projected sales: 2,500 units @ $88 / unit, variable cost: $50 / unit, Fixed Costs (excl. depr): $30,000 per year. Compute OCF per year, IRR, NPV with WACC of 12%, Payback period, MIRR with reinvestment rate of 10%, Equivalent Annual Annuity (EAA) of the project at 12% WACC? Any Year (1 to 5) Sales Variable Cost Fixed Cost Depreciation EBIT Tax @ 30% Net Income OCF

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