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Homework Protected Virul Word TID VW Both you BUSN 346 Art II MACRS Year Suppose you can wil 5,000 units per year at a price

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Homework Protected Virul Word TID VW Both you BUSN 346 Art II MACRS Year Suppose you can wil 5,000 units per year at a price of 5300 each Variable cost will whout $200 per unit, and the product should have a live your deed cost for the will run $150.000 per year Further you will need to west of $600,000 and get this freyes MARCS property for a ps. The salvage value of the equip is $50.000. You will be sent 5450.000 taking capital at the Author working capital require will be of Use a 30taxate the theme is 19 1 3-Year 33.33% 44.44 % 14.82% 7.41 % 2 3 4 5 6 5-Year 20.00 % 32.00% 19.20 % 11.52 % 11.52 % 5.76 % A Prepare a perfona comercy B- Calle CF 7-Year 14.29% 24.49 % 17.49 % 12.49 % 8.93 % 8.93 % 8.93 % 4,45% D. Aquest deprecated, us your of part will show you DO Tools View Homework II (Pro OTECTED VIEW Be carefulfiles from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Pre BUSN 346- Assignement II Suppose you can sell 5,000 units per year at a price of $300 each. Variable cost will run about $200 per unit, and the product should have a five-year life. Fixed cost for the project will run $150,000 per year. Further you will need to invest a total of $600,000 in manufacturing equipment. This equipment is five-years MARCS property for tax purposes. The salvage value of the equipment is $50,000. You will have to invest $450,000 in net working capital at the start. After that, net working capital requirements will be 20% of sales. Use a 30% tax rate throughout. The required return is 18%. A- Prepare a pro-forma income statement for each year, B- Calculate CF C Should you accept the project? Why or why not? D- Assume that the equipment depreciated using straight line is your answer of part c will differ or not show your answer). Screen 12 Type here to search o X View) - Word View Enable Editing MACRS . Year 1 3-Year 33.33% 44.44 % 14.82 % 7.41 % 2 3 4 5 6 7 8 5-Year 20.00 % 32.00% 19.20 % 11.52 % 11.52 % 5.76 % 7-Year 14.29 % 24.49 % 17.49 % 12.49 % 8.93 % 8.93% 8.93 % 4.45 % 10.9 I 100%

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