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Andronicus Corporation ( AC ) has the following jumbled information about an investment proposal: Revenues in each of years 1 4 = $ 2 2
Andronicus Corporation AC has the following jumbled information about an investment proposal:
Revenues in each of years $
Year initial investment $
Inventory level $ in year $ in year and $ in year
Production costs $ in each of years
Salvage value $ in year
Depreciation immediate bonus depreciation
Tax rate
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 attached If the cost of capital is what is the projects 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.
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