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help please ! WIll upvote! Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $658,000 that would be depreciated
help please ! WIll upvote!
Lakeside Winery is considering expanding its winemaking operations. The expansion will require new equipment costing $658,000 that would be depreciated on a straight-line basis to zero over the 6 -year life of the project. The equipment will have a market value of $170,000 at the end of the project. The project requires $40,000 initially for net working capital, which will be recovered at the end of the project. The operating cash flow will be $147,600 a year. What is the net present value of this project if the relevant discount rate is 12 percent and the tax rate is 23 percent? Multiple Choice $4,573 $16,847 $15,162 $18,143 $12,793Step by Step Solution
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