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Heuchera Corporation has provided the following information concerning a capital budgeting project Discount rate Tax rate Expected life of the project 118 30% 4
Heuchera Corporation has provided the following information concerning a capital budgeting project Discount rate Tax rate Expected life of the project 118 30% 4 $184,000 $ Annual sales $380,000 Annual cash operating expenses (including, $260,000 Investment required in equipment Salvage value of equipment both variable and fixed expenses) me company uses straight-line depreciation on all equipment the annual depreciation expense will be $46,000. Assume cash flows occur at the d of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. net present value of the project is closest to
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