MODULE 9 H.W

Annual OCF is $65 000

Investment of fixed asset is $110 000

After tax salvage value at end of assets life is $58 000

Change in Net working capital is $83 000, that will be recovered at the end of the 4-year project

The required return is 16%

a) Accept or Reject? b) What is EAC?

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OCF
Change in NWC
Capital spending
Total projected CF