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Gateway Communications is considering a project with an inital fixed assets cost of $169 milion that will be depreciated straight-line to a zero book value

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Gateway Communications is considering a project with an inital fixed assets cost of $169 milion that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $227,000 The project will not change sales but will reduce operating costs by $381,000 per year. The tax rate is 23 percent and the required return is 102 percent. The project wil require $45,500 in net working capital, which wit be recouped when the project ends. What is the project's NPV? Mulople Choice $37 951 3430,108 $400.224 5415.233 5355,770

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