Question
D Question 10 A firm is considering a capital expenditure project involving purchasing and installing new equipment. The equipment cost will be $30.000, with an
D Question 10 A firm is considering a capital expenditure project involving purchasing and installing new equipment. The equipment cost will be $30.000, with an additional $3,000 for delivery, and installation is estimated to be $5,000. The equipment has an expected life of 5 years, and an estimated salvage value of $5,000. The project requires an additional working capital investment of $8.000. The project revenues are forecasted to be $20,000 per year and cash expenses are estimated at $10,000 per year. The firm has a 35% marginal tax rate and an 10% weighted average cost of capital (WACC). Calculate the annual net cash flows from this project, assuming simplified straight-line depreciation. O $5,412.73 per year 059.160 per year O $8.810 per year O None of the listed items is correct O$8.327.27 per year
please do it in 10 minutes will be upvote
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