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Let's take another look at capital budgeting. Project A has a purchase price of $60,000, installation costs of $4,000 and expected EBITDA of $22,000 year
Let's take another look at capital budgeting. Project A has a purchase price of $60,000, installation costs of $4,000 and expected EBITDA of $22,000 year 1 , $40,000 year 2,$20,000 year 3 . MACRS 3 year. It can be sold for 20,000 at the end of the project period. Calculate the OCF for Project A. 30% tax. WACC9\% a. What is the initial investment? Continue through with b. , c, d, etc. n. What is the terminal value? o. What is the NPV? p. What is the IRR
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