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Frisbee's Inc. is considering a 4 year expansion project that requires $800,000 of equipment. The equipment will be depreciated over the 4 years, without any
Frisbee's Inc. is considering a 4 year expansion project that requires $800,000 of equipment. The equipment will be depreciated over the 4 years, without any remaining residual value. The project is expected to generate $900,000 per year with 50% variable costs and $150,000 annual fixed costs. If the tax rate is 20% and the required return on the project is 15%, what is the projects NPV?
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