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No it is not stated. I assume it is 1. PREPARE REVISED CASH FLOWS BASED ON THE INFO GIVEN BELOW. Assume the following items were
No it is not stated. I assume it is
1. PREPARE REVISED CASH FLOWS BASED ON THE INFO GIVEN BELOW. Assume the following items were overlooked: a. Working capital requirements with and without the following are as follows: b. A machine the company owns can be used for the project. If it was sold to another firm, the company could receive $20,000. The book value of the machine is $10,000. c. If the company didn't take the project, it would need to expand the plant five years from now. But with the project, capacity would need to be expanded in 2 years. The cost of the expansion in two years is $100,000 and in five years it is $115,000. The Cost of Capital is 10%. d. The project will cannibalize $5,000 (after-tax) per year from existing business units. e. The firm is in a 40% tax bracket. A. Show the revised cash flow estimates below Step by Step Solution
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