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MAKNCCAPITALINVESTMENTDECISONS 12. Castleton Creative, Inc. is considering expansion into a new line of art supplies. The company has paid $40,000 to have marketing research performed.

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MAKNCCAPITALINVESTMENTDECISONS 12. Castleton Creative, Inc. is considering expansion into a new line of art supplies. The company has paid $40,000 to have marketing research performed. The research indicates that newly required plant and equipment would cost $60,000 and be depreciated in a straight line manner over the next 3 years. The new product line would have sales of $175,000 per year. Annual fixed costs are projected at $30,000 and variable costs are projected to be 55% of annual sales. Net working capital requirements are $15,000 and Castleton Creative's tax rate is 35%. The firm requires a 12% required rate of return. At the end of 3 years the equipment will be sold for $20,000. Please complete a project analysis and calculate at least 3 decision rules to support your final answer. Should Castleton Creative, Inc. launch the product line or not? Please show all steps and indicate whether you would accept or reject the project after you calculate each decision rule AS WELL AS your overall decision and WHY

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