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Each widget will be sold for $ 1 , 2 0 0 . Variable costs per widget are $ 8 0 0 , and fixed
Each widget will be sold for $ Variable costs per widget are $ and fixed costs are $ per year. Assume all costs will occur at the beginning of the year and the revenues will occur at the end of the year eg variable costs and fixed costs for widgets for year will occur at year Start up costs include $ of fully deductible expense at year $ for the building CCA rate $ for the equipment CCA rate and $ for land. Net working capital each year will be equal to of the sales of the following year. Any remaining net working capital will be fully recovered at the end of the th year.At the end of years the buildng will be sold for $ equipment for $ and land for $ LTM is an ongoing profitable business and pays taxes at a rate of and uses a discount rate of Assume asset pool will remain open. Determine NPV
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