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invested $550,000 in a revolutionary waste management system and were on the p launching the service, but ran out The brothers believe the technology will

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invested $550,000 in a revolutionary waste management system and were on the p launching the service, but ran out The brothers believe the technology will work and the Knots would pay $300,000 to purchase the system for their company. The equipment can be put into use immediately and it is expected to generate revenues of $500,000 annually for the initia: increasing to $525,000 per year for the final five years. Cash expenses will be $360,000 per year for ten years. Working cap will have to be injected at the start of operations to support sales. If the project proceeds, an overhaul of the equipment will be required at the end of year 6 at a cost of $200,000 (cost to be c Ten years from now, the equipment can be salvaged for $80.000. CCA Rate: 30%. Tax Rate: 39%. WACC: 10%. Given the abov information: Total Cash flow in year 0 is: $(375,000)$(300,000)$(75,000)$(350,000) PV of the overhaul is? 5(112,895)$(146,084)$(419,034)5(715,000) What is the PV for revenue form year 1 to year 5 ? $1,156,190$305,000$1,355,378$789,352 What is the PV for revenue form year 6 to year 10 ? $753,798$1,596,457$1,213,999

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