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Help pitt.edu Question Completion Status: QUESTION 3 You can buy a factory for $50,000 that will produce $8,000 in net sales (sales- costs) at the

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Help pitt.edu Question Completion Status: QUESTION 3 You can buy a factory for $50,000 that will produce $8,000 in net sales (sales- costs) at the end of each year for 10 years. The factory depreciates to zeo ve 25 years. You think you can sel to fa toy for $10,000 after 10 years. There are no MNC requirements. Tax rate is 35%. If annual interest rate is 5%, what is NPV of the factory? OA. -$5,779 895,995 OC. $10,476 D$5,779 QUESTION 4 You can buy a machine for $1500 that will depreciate straight line to zero over 5 years. It will generate $600 in sales and $275 in costs at the end of each year for the next 5 years. The machine will have no resale value when the project ends in five years. The project requires an immediate addition of S400 n net working capital This net working capital will be ecouped at the end of the prie t. If the tax rate is 35% and in estors require 5% annual return, what is the NPV? O A-S637 08,$217 O C. $226 D,-$494

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