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If all part are answered from the 1 question and all is correct. I will give a thumbs up Chegg is considering a new 3-year-long
If all part are answered from the 1 question and all is correct. I will give a thumbs up
Chegg is considering a new 3-year-long project that would involve using specialized scanning software to scan submitted screenshots in low resolution and convert them into high resolution text documents that there's currently a strong market for. - Chegg requires a 11 percent annual retum on this uncertain project, high enough to compensate for the underlying uncertainty of future cash inflows. - Chegg pays taxes on its annual income and other taxable cash flows according to a 25 percent tax rate. - Chegg estimates $1,440,000 in sales revenues and $576,000 in operating costs each year of the project. - A decision to accept the project would be followed by an immediate investment of \$1.62 million into purchasing the software with an econornic life of 3 years. Like other similar software, its value will be dropping over its economic life at a constant anmual rate. At the end of the project Chegg is hoping to be able to find a different company in similar line of business that would be willing to pay $126,000 for the software and its future ownership. - Chegg would also need to spend $180,000 right away to build a cash buffer that would be used to draw the funds to cover the expenses to quickly hire specialists to fix any unforeseen software bugs that may arise throughout the life of the project. The project's total cash flow in "Year 0n= The project's total cash flow in "Year 1"= The project's total cash flow in "Year 2n= The project's total cash flow in "Year 3n= Step by Step Solution
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