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Laurman, Inc. is considering the followlng proiect: Required investment in equipment Project life Salvage value 2,205,000 225,000 The project would provide net operating income each
Laurman, Inc. is considering the followlng proiect: Required investment in equipment Project life Salvage value 2,205,000 225,000 The project would provide net operating income each year as follows Sales Variable expenses Contribution margin Fixed expenses 2,750,000 1,150,000 520,000 Salaries, rent and other fixed out-of pocket costs Depreciation 350 870 Total fixed expenses Net operating income Company discount rate 18% 1. Compute the annual net cash inflow from the project 2. Complete the table to compute the net present value of the investment
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