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ABC Inc. is considering a new project whose data are shown below. The equipment would be used for three years with straight - line depreciation,
ABC Inc. is considering a new project whose data are shown below. The equipment would be used for three years with straightline depreciation, and would have zero salvage value. No change in net operating working capital would be required. Revenues and other operating costs are expected to be constant over the project's year life. What is the project's NPV Hint: You need to first find CF CF CF and CF CFCF are the same number.
Keep the sign if it's a negative NPV number. Round to the whole dollar.
Riskadjusted WACC
Net investment cost depreciable basis
$
Straightline depr. rate
Sales revenues, each year
$
Annual operating costs excl depr.
$
Tax rate
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