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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 after-tax cash flow from selling the machine at the end of year 32 $14,500 O $23,377 O $11,698 O $30,000 DSSS Corporation DSSS Corporation is considering a new project to manufacture widgets. The cost of the manufactunng 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 total cash flow generated in year 3? O $52,274 O $32,802 O $90,152 O $67,783

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