Question
Boulder jewelry store is considering expanding its operations. The expansion will require new equipment costing $671,000 that would be d -line basis to zero
Boulder jewelry store is considering expanding its operations. The expansion will require new equipment costing $671,000 that would be d -line basis to zero over the 6-year life of the project. The equipment will have a market value of $179,000 at the end of the project. The pro ially for net working capital, which will be recovered at the end of the project. The operating cash flow (pre-tax) will be $161,700 a year. Wha e of this project if the relevant discount rate is 14 percent and the tax rate is 40 percent?
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