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As the key financial manager of Success Systems, a manufacturer of internet equipment, you are considering building a new plant. The new plant has an

As the key financial manager of Success Systems, a manufacturer of internet equipment, you are considering building a new plant. The new plant has an initial cost of $500 million, will last 5 years, and will be depreciated to a book value of $0 on a straight-line basis. The salvage value of this new plant is expected to be $100 million. Sales and costs are expected to be $220 million and $77 million, respectively, in each of the five years the plant is in existence. In addition, inventories will immediately rise by $25 million and accounts payable will rise immediately by $50 million. Accounts receivable will rise by $35 million at the end of the 1st year (i.e., at t=1). Inventories, accounts receivable and accounts payable will return to original levels at the end of the projects life.

- If the tax rate is 24% (on both income and on capital gains), what is the year five (t=5) FINAL TIMELINE CF in millions of dollars? I RECOMMEND THAT YOU WRITE THE NUMBERS in millions (i.e. as if the word millions was written next to each number). Answer should include two digits to the right of the decimal point.

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