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A potential investment has a cost of $387,500 and a useful life of 5 years. Annual cash sales from the investment are expected to be

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A potential investment has a cost of $387,500 and a useful life of 5 years. Annual cash sales from the investment are expected to be $255,338 and annual cash operating expenses are expected to be $100,588. The expected salvage value at the end of the investment's life is $50,000. The company uses straight-line depreciation for all assets based on the full cost of the assets. The company has a before-tax discount rate of 17%, an after-tax discount rate of 14%, and a tax rate of 25%. equired: Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whgle dollar and IRR to ine decimal place (Le. 055=5.5% ). Enter negative amounts with a minus sign.) 2. Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest wholo dollar and IRR to one) decimal place (1.e. 055 = 5.5\%). Enter negative amounts with a minus sign.) expected to be $255,338 and annual cash operating expenses are expected to be $100,588. The expected salvage value at the end of the investment's life is $50,000. The company uses straight-line depreciation for all assets based on the full cost of the assets. The company has a before-tax discount rate of 17%, an after-tax discount rate of 14%, and a tax rate of 25%. Required: 1. Assume the company wants to consider this investment before-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (1.e. 055 = 5.5% ), Enter negative amounts with a minus sign) 2. Assume the company wants to consider this investment after-tax. (Round dollar amounts to the nearest whole dollar and IRR to one decimal place (i.e. 055=5.5% ) Enter negative amounts with a minus sign)

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