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C3355 You'll Re BUS 250 - Chapte... Bobcat Mail-Laur New Tab B broccyourbody... Obergefell v. Hod. Your company is considering a new project that will

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C3355 You'll Re BUS 250 - Chapte... Bobcat Mail-Laur New Tab B broccyourbody... Obergefell v. Hod. Your company is considering a new project that will require $10,000 of new equipment at the start of the project. The equipment will have a depreciable life of five years and will be depreciated to a book value of zero using straight-line depreciation. The cost of capital (discount rate) is 20 percent, and the firm's tax rate is 10 percent. Estimate the present value of the tax benefits from depreciation. $1.516 $1,054 $899 O $1,402 D Question 17 2.5 pts A new project would require an immediate increase in raw materials (inventory) in the amount of $17.000. The firm expects that accounts payable will automatically increase by $7,000. How much must the firm expect its investment in net working capital to increase if they accept this project? NWC - Inventories + Accounts Receivable - Accounts Payable. O $17,000 $7,000 $10,000 24,000

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