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A company is considering a project that would require an initial investment of $ 6 , 3 0 0 , 0 0 0 for the
A company is considering a project that would require an initial investment of $ for the expansion of a factory, and a $ investment in inventory and other shortterm assets. The capital expenditure can be depreciated, straightline, to zero, over the threeyear life of the project. The company expects to generate sales of $ per year, with costs of $ per year. The company will pay taxes at a rate of The company expects to sell off all inventory in the final year, and end the project without any workingcapital. If the required return for projects with this level is risk is what is the NPV of this project?
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