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A company is considering a new 4 - year project. The necessary fixed assets will cost $ 1 9 0 , 0 0 0 and

A company is considering a new 4-year project. The necessary fixed assets will cost
$190,000 and be depreciated on a 3-year MACRS and have no salvage value. The MACRS
percentages each year are 33.33 percent, 44.45 percent, 14.81 percent, and 7.41 percent,
respectively. The project will have annual sales of $150,000, variable costs of $35,500, and
fixed costs of $12,850. The project will also require net working capital of $3,450 that will
be returned at the end of the project. The company has a tax rate of 23 percent and the
project's required return is 11 percent.
Find NPV, IRR, Payback period and PI.
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