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Do on excel Allied is considering a new expansion project, Project S. Project Sis a new health-food product that Allied is considering introducing to the

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Allied is considering a new expansion project, Project S. Project Sis a new health-food product that Allied is considering introducing to the market. Information: $1,250 of equipment in 2021 $156 at t=0. From t=1 to t=3, there is no change in NOWC Project S will require Allied to purchase the change in net operating working capital (NOWC) is The project will last for four years. The company forecasts the following sales: 1,875 units in year 1; 2,600 units in year 2; 2,525 units in year 3; and 2,450 units in year 4. Each unit will sell for $6 The fixed cost of producing the product is $1,250 each year The variable cost of producing each unit will be $5.45 in year 1, 1.078 in year 2, 1.046 in year 3 and $1.221 in year 4. The company will use straight-line depreciation. The new equipment has four-year seviceable life When the project is completed in year 4 (t=4), the company expects that it will be able to salvage the equipment for $63 $156 40% 8% 7% it will fully recover the NOWC of The estimated tax rate is The project's WACC is estimated to be Reinvestment Rate Fing NPV Find IRR Find MIRR Find discounted payback period

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