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hello, may you please assist? thank you:) Foley Systems considering a new project whose data are shown below. Under the new tax law, the equipment
hello, may you please assist? thank you:)
Foley Systems considering a new project whose data are shown below. Under the new tax law, the equipment for the project is eligible for 100% bonus deprecation, so it will be fully deprecated at t-0. After the project's 3-year life, the equipment would have zero salvage value. The project would require additional net operating working capital (NOWC) that would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's life. What is the project's NPV (Hint: Cash flows from operations are constant in Years 1 to 3.) Do not round the intermediate calculations and round the final answer to the nearest whole number WACC 10.09 Equipment cost 587,000 Required mat operating working capita (NOWC) $19,000 Annual sales revenues 587.000 Annuat operating costs $27,000 25.09 a. 546,024 b. $13,383 Tax rate C. 546,658 d. 549,592 $41.033 Step by Step Solution
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