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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 $ and then requires an initial investment in working capital of at t You expect the project to produce sales revenue of $ per year for three years. You estimate manufacturing costs at of revenue. Assume all revenues and cost occur at year end, ie t t The equipment depreciates using straight line depreciation over three years. At the end of the project, the firm can sell equipment for and also recover the investment in net working capital. The corporate tax rate is and cost of capital is Calculate cash flows from the project.
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