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NPV and Modified ACRS: In the previous problem, suppose the fixed assets actually falls into the three-year MACRS class. All the other facts are the
NPV and Modified ACRS: In the previous problem, suppose the fixed assets actually falls into the three-year MACRS class. All the other facts are the same. What is the projects Year 1 net cash flow now? Year 2? Year 3? What is the new NVP?
Data Given
Initial investment in net working capital = $150,000
Market Value Fixed assets= $185,000 at the end of the project
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