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Machine price = $ 1 , 8 0 0 , 0 0 0 ; additional inventory requirement = $ 1 5 0 , 0 0

Machine price = $1,800,000; additional inventory requirement = $150,000. Cash flows will be generated at year end. Rev1= $400,000 and grows at 5 percent each year for five years, while Cost1= $125,000 and grows at 4 percent. At the end of the five-year project, the assets can be sold for $200,000, while the additional inventory that was tied up will be released. The applicable CCA rate is 30 percent. The tax rate =40 percent, and RF =4.5 percent; project beta =1.25; ERM =9.5 percent. The ending UCC = $367,353.
Calculate the NPV of the project if the asset class remains open upon termination of the project. Decide whether or not Brigid Co. should accept the project. (Include the half-year rule.)Brigid Co. has the following potential project:

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