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Garrison Communications is considering a project with an initial fixed asset cost of $ 1 . 7 5 million which will be depreciated using the
Garrison Communications is considering a project with an initial fixed asset cost of $ million which will be depreciated using the double declining method over the year life of the project. At the end of the project the equipment will be sold for an estimated $ The project will not directly produce any sales but will reduce operating costs by $ a year. The tax rate is percent. The project will require $ of inventory which will be recouped when the project ends. Should this project be implemented if the firm requires a percent rate of return? Why or why not?
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