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Kids' Place is considering a new investment whose data are shown below. The equipment that would be used has a 3-year tax life, would be
Kids' Place is considering a new investment whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated on a straight line basis over the project's 3-year life, would have zero salvage value, and would require some new working capital that would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? (Hint: Cash flows are constant in Years 1-3.) WACC 10% Net equipment cost (depreciable basis) $65,000 Required new working capital $10,000 Straight line depr
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