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NPV. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 47,000 units at $18 a

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NPV. Grady Precision Measurement Tools has forecasted the following sales and costs for a new GPS system: annual sales of 47,000 units at $18 a unit, production costs at 37% of sales price, annual foed costs for production at $180,000. The company tax rate is 38%. What is the annual operating cash flow of the new GPS system? Should Grady Precision Measurement Tools add the GPS system to its set of products? The initial investment is $1.340,000 for manufacturing equipment, which will be depreciated over six years (straight line) and will be sold at the end of five years for $380,000. The cost of capital is 11% What is the annual operating cash flow of the new GPS system? $ (Round to the nearest dollar) What is the after-tax cash flow of the GPS system at disposar? $ (Round to the nearest dollar) What is the NPV of the new GPS syatem? (Round to the nearest dollar) Should Grady Precision Measurement Tools and the GPS system to its set of products? (Select the best response.) O A Yes, because the project will generate enough wealth to give investors an adequate yield OB. No, because the NPV is negative which means the projected annual rate of retum on the project is less than the cost of capital

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