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here are the options Hoosier Corporation is an entertainment company that produces and distributes digital content and operates its own amusement parks. The company is

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Hoosier Corporation is an entertainment company that produces and distributes digital content and operates its own amusement parks. The company is looking into expanding into a new market, Hoosiersville. There are several projects the CEO considers investing in to capture the values brought by the market. One of the projects pending approval is upgrading the amusement park in Hoosiersville If the project gets approved, the company expects an annual sale of $19.6 million from ticket sales, food, and concessions at the park, with an expected growth of 2.5% annually. The annual operating expenses are expected to be 34% of sales. and the working capital (needed immediately) is expected to be 10% of the next year's sales. In addition, the CEO determines that the new park will need to buy a new rollercoaster which will have a $3 million upfront cost. The rollercoaster will be depreciated straight-line for eight years and is expected to have a salvage value of $550,000 based on the accounting department's best estimate when purchasing the rollercoaster If the company will be able to sell the roller coaster for $600,000 at the end of the project, what will be the total cash flow from all project related activities (Capex, NWC, OCF) in year 8 . Assume the corporate tax rate is 21%, and the remaining networking capital can be recovered at the end of the project. $14,354,502 $474,000 $15,600,000 none of the choices is correct $15,131,339

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