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Can someone help me solve this problem? Thank you! Johnnies Corp has the following information should this project be taken on ? Why? WACC=10.0% Marginal

Can someone help me solve this problem? Thank you!

Johnnies Corp has the following information should this project be taken on ? Why?

WACC=10.0%

Marginal Tax Rate= 40%

Working Capital as % of Yr. 1 Sales= 12.5%

Sales= $ 35,000

Variable Costs= $ 9,000

Equipment selling price at end of project= $ 15,000

New Equipment Cost= 30,000

Modification Costs=20,000

MACRS class5 years

Project ends in number of years= 4

Fixed Costs= 2,000

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