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i need an explanation and answer to this finance problem. A firm is considering a project with the following information: - Project wili require purchase
i need an explanation and answer to this finance problem.
A firm is considering a project with the following information: - Project wili require purchase of a machine for $94,322.00 that is MACPS depreciable over a five-year schedule. (no depreciation until end of year 1 ). - Project will require immediate non-depreciable expenses of \$28,207.00 TODAY (year 0). - Project will have the following projected balance sheet values of NWC: - Sales for the project wal be $45,262.00 per year, with all other expenses (excluding depreciation) at 51.00% of sales. - The tax rate for the firm is 36.00%, while the cost of capltal is 11.00% "assume project goes beyond two years What is the project cash flow for year o Step by Step Solution
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