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Consider a four-year project with the following information: initial fixed asset investment = $570,000; straight-line depreciation to zero over the four-year life; zero salvage value;
Consider a four-year project with the following information: initial fixed asset investment = $570,000; straight-line depreciation to zero over the four-year life; zero salvage value; price = $40; variable costs = $27; fixed costs = $245,000; quantity sold = 88,000 units; tax rate = 22 percent. |
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