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Alberta. Pasta is considering producing a new type of pasta. The required equipment has a constant capital cost allowance ovi is 3-year life with a
Alberta. Pasta is considering producing a new type of pasta. The required equipment has a constant capital cost allowance ovi is 3-year life with a zero salvage value. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other Alberta Pasta products and would reduce the company's pre-tax annual cash flows. What is the project's NPV7 a. 36,750 b. 38,750 c. 37,750 d. 40,301
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