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Eastern Clothing Company is considering manufacturing a new style of shirt, whose data are shown below. The equipment to be used would be depreciated by

Eastern Clothing Company is considering manufacturing a new style of shirt, whose data are shown below. The
equipment to be used would be depreciated by the straight-line method over its 3-year life and would have a zero
salvage value, and no new working capital would be required. Revenues and other operating costs are expected
to be constant over the project's 3-year life. However, this project would compete with other Eastern's products
and would reduce their pre-tax annual cash flows. What is the project's NPV?
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