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Net Present Value For discount factors use Exhibit 1 2 B - 1 and Exhibit 1 2 B - 2 . Tatsumi Inc. has just
Net Present Value For discount factors use Exhibit and Exhibit Tatsumi Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $ Producing the printer requires an investment in new equipment costing $ The printer has a projected life cycle of years. After years, the equipment can be sold for $ Working capital is also expected to decrease by $ which Tatsumi will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $ The required rate of return is Required: Prepare a schedule of the projected annual cash flows. Year Item Cash Flow Calculate the NPV using only discount factors from Exhibit s Calculate the NPV using discount factors from both Exhibits and
Net Present Value
For discount factors use Exhibit and Exhibit
Tatsumi Inc. has just completed development of a new printer. The new product is expected to produce annual revenues of $ Producing the printer requires an investment in new equipment costing $ The printer has a projected life cycle of years. After years, the equipment can be sold for $ Working capital is also expected to decrease by $ which Tatsumi will recover by the end of the new product's life cycle. Annual cash operating expenses are estimated at $ The required rate of return is
Required:
Prepare a schedule of the projected annual cash flows.
Year Item
Cash Flow
Calculate the NPV using only discount factors from Exhibit
s
Calculate the NPV using discount factors from both Exhibits and
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