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Needle and Thread Inc. is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a
Needle and Thread Inc. is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a $ capital investment and $ shipping fee, and will be equally depreciated straightline over its year life. They believe they can salvage $ for the equipment at the end of the project.Incremental sales are expected to be $ annually for the year period with cash expenses of of sales. The company would also have to commit initial working capital to the project of $ The company is subject to a marginal tax rate of and investors require a return on projects with a similar risk.
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