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(After-tax salvage value) An asset used in a two-year project fots in the three-year MACRS class for tax purpose 0.3333, 04444, 0.5482.0.0741 The asset has

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(After-tax salvage value) An asset used in a two-year project fots in the three-year MACRS class for tax purpose 0.3333, 04444, 0.5482.0.0741 The asset has on acquisition cost of $17,000,000 and will be sold for $6,000,000 at the end of the project. If the tax rate is 21%, the after-tax talvage value of the seas Aunt Sally's Sauces Inc., is considering expansion into a new tine of all-natural, cholesterolio, sodium-free, fat-free, tow.calorio tomato sauces, Ballyhan poid $16,000 for a marketing study which indicates that the now product line would have sales of $700,000 per year for the next six years Manufacturing plant and equipment would cost $600,000 and will be depreciated using the following annual depreciation rates:0 2 0.32, 0.1920, 0.1152.0.1152, 0.0576. The fixed assets wa have no market value at the end of six years. Annual fixed costs are projected at $30,000 and variable costs are projected at 65% of sales Net operating working capital requirements are $75,000 for the six year life of the project, the outday for working capital will be recovered at the end of six years. Aunt Sally's tax rate is 259 and the firm requires a 6% return. The projected Froo Cash Flow(FCF) in the first year is $

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