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FIN220 Co. is considering a three-year project that requires an initial fixed asset investment of 21 million Baht. The asset will be depreciated straight-line to
FIN220 Co. is considering a three-year project that requires an initial fixed asset investment of 21 million Baht. The asset will be depreciated straight-line to zero over its three-year tax life, after which time it will have a market value of 3 million Baht. The project is estimated to generate 25 million Baht in annual sales, with costs of 13 million Baht. The project also requires an initial investment in net working capital of 2 million Baht. The tax rate is 25 percent and the required return on the project is 15 percent. What is the project's NPV? 4,339,114.00 -4,339,114.00 O 3,407,464.01 0 -3,407,464.01
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