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DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and

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DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufacturing equipment is $135,000. The cost of shipping and installation is an additional $14,500 The asset will fall into the 3-year MACRS class The year 1- 4 MACRS percentages are 33.33%, 44.45%, 14,81%, and 7.41%, respectively. Sales are expected to be $230,000 per year Cost of goods sold will be 65% of sales. The project will require an increase in net working capital of $14.500. At the end of three years, DSSS plans on ending the project and selling the manufacturing equipment for $30,000 The marginal tax rate is 35% and DSSS Corporation's appropriate discount rate is 14%. The fixed expenses is $12,000 Refer to DSSS Corporation. What is the initial investment outlay for this project? $164000 O $154,000 $174.000 $25,000 Refer to DSSS Corporation. What is the depreciation expense in year 1? $66,453 $49,828 O $22,141 O $11,078 Refer to DSSS Corporation. What is the depreciation expense in year 2? O $22,141 $49,828 O $11,078 O $66,453 Refer to DSSS Corporation. What is the depreciation expense in year 3? O $22,141 O $11,078 O $66,453 $49,828 Refer to DSSS Corporation. What is the book value of the machine at the end of year 4? $22,141 O $11,078 O $66,453 O $49,828

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