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A company is considering launching a new corporate project. The company will have to make capital investments, working capital investments, and generate cash flows from
A company is considering launching a new corporate project. The company will have to make capital investments, working capital investments, and generate cash flows from operating the new project. The equipment required for the project will cost $3,000,000 today, will last for five years (the length of the project), and is estimated at the time of purchase to sell for $300,000 at the end of its life. Revenue is projected at $5.0M in the first year, $5.3M in the second year, $5.6M in the third year, $5.9M in the fourth year, $6.0M in the fifth year, and $5.0M in the final year. The investment in net working capital is $300,000 initially, with the year-end values at 10.0% of that year's sales. The company
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