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Heuchera Corporation has provided the following Information concerning a capltal budgeting project: Discount rate 140 Tax rate 305 Expected 11te of the project Investment required
Heuchera Corporation has provided the following Information concerning a capltal budgeting project: Discount rate 140 Tax rate 305 Expected 11te of the project Investment required in equipment $ 192,000 Salvage value of equipment . Annual sales $340,000 Annual cash operating expenses (including, $240,000 both variable and fixed expenses) 0 The company uses straight line depreciation on all equipment, the annual depreciation expense will be $38,000. Assume cash flows occur at the end of the year except for the initial Investments. The company tokes income taxes into account in its capital budgeting The net present value of the project is closest to $85.18 5173.600 senes $23718
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