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Margarite's Enterprises is considering project project will require $325,000 for new fixed assets, $160,ooo for additional inventory and $35,000 for additional The to increase by

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Margarite's Enterprises is considering project project will require $325,000 for new fixed assets, $160,ooo for additional inventory and $35,000 for additional The to increase by will be accounts receivable. Short-term debt is expected $100,000 and long-term debt is expected to increase by $300,000. The project has a 5-year life. The fixed assets can depreciated straight-line to a zero book value over the life of the At the end of t, the fixed assets be sold for 25% of their original cost. The net working capital returns to its original level at the end of the project. The project is expected to generate annual sales $554000 and costs of $430,000. The tax rate is 35%and the required of rate of return is 15%. What is the cash fow recovery from networking capital at the end of this project? O $295,000 O $147812 O $195,ooo. O s247812 O 95 ooo

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