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A firm is considering an EXPANSION project. The project will require a $10,000 equipment investment and an additional $1200 in Working Capital. This is a
A firm is considering an EXPANSION project. The project will require a $10,000 equipment investment and an additional $1200 in Working Capital. This is a 5 year project, and the firm will depreciate the new equipment at a $2000 per year. The project will result in $4600 per year in additional revenues. Annual operating costs will increase by $300/year. At shutdown, the equipment will have no salvage value. The firm's relevant tax rate is 35% WHAT IS THE INCREMENTAL INITIAL CASHFLOW? Group of answer choices
-$21,500 -$11,200 $4600 $-10,000
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