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Krekonite isconsideringa3-yearprojectthatprovides 200,000 peryear.Ithasanannualcostofgoodssoldof125,000andannualSG&Aof12,000.Itusesthestraight-linedepreciation method.Theinitialworkingcapitalis20,000andwillremainunchangedoverthelifeoftheproject.Iftaxrateis34%,initialinvestmentis 90,000andcostofcapitalis20%,isthisprojectworthundertaking

Krekonite isconsideringa3-yearprojectthatprovides

200,000 peryear.Ithasanannualcostofgoodssoldof125,000andannualSG&Aof12,000.Itusesthestraight-linedepreciation

method.Theinitialworkingcapitalis20,000andwillremainunchangedoverthelifeoftheproject.Iftaxrateis34%,initialinvestmentis

90,000andcostofcapitalis20%,isthisprojectworthundertaking

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