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Company A is implementing a capital expenditure project involving purchasing and installing new equipment. The equipment we estimated to be $3,000. The equipment has an

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Company A is implementing a capital expenditure project involving purchasing and installing new equipment. The equipment we estimated to be $3,000. The equipment has an expected life of 5 years and estimated salvage value of $10,000. The project require forecast at $25.000 per year and cash expenses are estimated at $8,000 per year. The firm has a 30% marginal tax rate and a 12 54.800 per year, assuming simplified straight-line depreciation Calculate the one-time, end of project cash flows from this propose 512,000 $15.000 $7,000 $17,000 None of the listed items is correct aling new equipment. The equipment will cost $20,000, with an additional $1,000 charge for delivery. Installation is alvage value of $10,000. The project requires an additional working capital investment of $5,000. The project revenues are mm has a 30% marginal tax rate and a 12% weighted average cost of capital. Annual depreciation is expected to increase b end of project cash flows from this proposed project

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