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can someone help me with this? Use the following information to answer the next three questions: You are evaluating a project for The Dogs, that
can someone help me with this?
Use the following information to answer the next three questions: You are evaluating a project for The Dogs, that involves the purchase of a new dog biscuit making machine. The project has a three year life and you estimate the project will increase revenues by $165,000 and will increase costs by $30,000 each year. The project requires an initial investment of $120,000 which is depreciated on a straight-line basis to zero over the 3 year project life. The machine will be sold at the end of the project for $35,000. The initial net working copital investment required for this project is $14,000 which will be recovered at the end of the project's life. The tax rate is 25%. and the required return on the project is 10%. What is the intial cash outflow for this project? What is the intial cash outflow for this project? Multiple Choice $106,000 104,000 $90,000 $134,000 Step by Step Solution
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