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Germaine Metals is considering installing a new molding machine which is expected to produce operating cash flows of $52,200 per year for 7 years. At

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Germaine Metals is considering installing a new molding machine which is expected to produce operating cash flows of $52,200 per year for 7 years. At the beginning of the project, inventory will increase by $19,800, accounts receivables will increase by $15,400, and accounts payable will increase by $19,000. At the end of the project, net working capital will return to the level it was prior to undertaking the new project. The initial cost of the molding machine is $262,000. The equipment will be depreciated straight-line to a zero book value over the life of the project. The equipment will be salvaged at the end of the project creating an aftertax cash flow of $42,400. What is the net present value of this project given a required return of 12.7 percent? Change in NWC =$ CFO=$ CF7=$ NPV=$

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