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Answer questions 7 , 8 , and 9 using the following problem Johnson, Inc. is considering a new project. The project will require $ 3

Answer questions 7,8, and 9 using the following problem
Johnson, Inc. is considering a new project. The project will require $325,000 for new fixed assets, $25,000 for delivery and installation and $75,000 for additional inventory. The project has a 7-year life. The fixed assets will be depreciated straightline
to a zero-book value over the life of the project. At the end of the project, the fixed assets can be sold for $105,000. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales of $600,000 and costs of $400,000. The tax rate is 21 percent and the required rate of return is 12 percent.
What is the project's cash flow at time zero (Initial Investment)?
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