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Calculate initial investment, appropriate cash flows, and use the net present value criteria to evaluate the following investment opportunity: Current revenues 2000 Expected new revenues
Calculate initial investment, appropriate cash flows, and use the net present value criteria to evaluate the following investment opportunity: Current revenues 2000 Expected new revenues 3000 Cash outflows (CGS) Old 1500 Cash outflows (CGS) New 2000 Price of project 500 Life of project 5 Cost of funds 20% Tax rate 40% Revenues from old equipment 250 Book value of old equipment 50 Change in NWC 62.4648463 Residual value new equipment 0
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