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Andronicus Corporation ( AC ) has the following jumbled information about an investment proposal: a . Revenues in each of years 1 - 4 =
Andronicus Corporation AC has the following jumbled information about an investment proposal:
a Revenues in each of years $
b Year initial investment $
c Inventory level $ in year $ in year and $ in year
d Production costs $ in each of years
e Salvage value $ in year
f Depreciation immediate bonus depreciation
g Tax rate
h There is an additional month lag for all cash flows after year For example, customers pay consistently with a month lag, as
AC does for production costs, taxes, etc.
Draw up a set of cash flow forecasts as in Table If the cost of capital is what is the project's NPV Assume that, if the project
generates losses, those losses can be used to offset profits for tax purposes elsewhere in the business.
Note: Do not round your intermediate calculations. Round your final answer to the nearest whole dollar amount.
NPV
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