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Given the following information to outfit a new Fed-Ex duplicating facility in the United States, what is TOTAL cash flow in year 0 (CF0)?: Facility
Given the following information to outfit a new Fed-Ex duplicating facility in the United States, what is TOTAL cash flow in year 0 (CF0)?:
Facility construction: $15M
NWC: $1M
OCF: $3.65M
Project lifespan: 5 years
Salvage Value at end-of-life: $2M
Marginal tax rate: 35%
WACC: 10%
Multiple Choice
-$15M
$15M
-$16M
-$14M
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