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A project required an investment in equipment of 9 0 0 0 0 $ and then requires an initial investment in working capital of 1

A project required an investment in equipment of 90000$ and then requires an initial investment in working capital of 10000 at t=0. You expect the project to produce sales revenue of 120000$ per year for three years. You estimate manufacturing costs at 60% of revenue. ( Assume all revenues and cost occur at year end, i.e. t=1, t=2.) The equipment depreciates using straight line depreciation over three years. At the end of the project, the firm can sell equipment for 10000 and also recover the investment in net working capital. The corporate tax rate is 30% and cost of capital is 15%. Calculate cash flows from the project.

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