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It is expected that net working capital will amount to 10% of sales in the following year. For example, the store will need an initial

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It is expected that net working capital will amount to 10% of sales in the following year. For example, the store will need an initial (Year 0 ) investment in working capital of .1035,000$50=$175,000. Plant and equipment necessary to establish the giftware business will require an additional investment of $213,000. This investment will be depreciated using MACRS and a 3-year life. After 4 years, the equipment will have an economic and book value of zero. The firm's tax rate is 21%. What is the net present value of the project? The discount rate is 10%. Use the MACRS depreciation schedule. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.)

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