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Foley Systems in condering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3

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Foley Systems in condering a new investment whose data are shown below. The equipment would be depreciated on a straight-line basis over the project's 3 yeur life would have a nero salvage value and would require additional net operating working capital that would be recovered at the end of the project's life. Havenues and other operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flow from operations are constant in Years 1 to 3.) Do not round the intermediate calculations and round the final nuwer to the nearest whole number WACC 10.09 Net investment in fixed assets (basis) $75,000 Required net operating working capital $15,000 Straight line depreciation rate 33.333 Annual sales revenues 566,000 Annual operating costs (excl. depr) 525,000 Tax rate 350N O #19,304 1.58,188 57.535 Od $10.049 @ 39,211

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