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Nyambose itd is evaluating a project. Projected profit for the first year of the project is as follows. The corporate tax rate is 28% Sales
Nyambose itd is evaluating a project. Projected profit for the first year of the project is as follows. The corporate tax rate is 28% Sales 250 000 Cost of sales 150 000 The machinery to be used in the project has a cost of R200 000 and an expected residual value of zero at the end of the four-year project life. The depreciation is included in the cost of sales and the tax and accounting depreciation is identical The company's WACC IS 1896 (a) What is the depreciation charge per year (2 marks) (b) What are the net cash flows for this project in year o iz marks) (c) What will be the net cash flows for this project in Year marke (dWhat is the NPV of this protectia marie)
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