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. A new project has an intial cost of $480,000 with an expected life of 8 years. The project is expected to have earnings before
. A new project has an intial cost of $480,000 with an expected life of 8 years. The project is expected to have earnings before depreciation and taxes of $125,000 per year. If the projected is being depreciated over a 3-year term and the firms tax rate is 40%, calculate the cashflows of the project over its estimated life.
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