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please answer 17 and 20 17. NPV and Bonus Depreciation Eggz, Inc., is considering the purchase of new equipment that will allow the company to

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please answer 17 and 20

17. NPV and Bonus Depreciation Eggz, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $425,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $45,000 at the end of the project in five years. Sales would be $275,000 per year, with annual fixed costs of $47,000 and variable costs equal to 35 percent of sales. The project would require an investment of $25,000 in NWC that would be returned at tlhe end of the project. The tax rate is 22 percent and the required return is 9 percent. What is the project's NPV? poro WIc project should you choose? 20. Inflation and Company Value of drinking water each year in perpetuity. This year each bottle will sell for $1.43 in real terms and will cost $.85 in real terms. Sales income and costs occur at year-end. Rev- enues will rise at a real rate of 1.3 percent annually, while real costs will rise at a real Sparkling Water, Inc., expects to sell 3.4 million bottles rate of .9 percent annually. The real discount rate is 6 percent. The corporate tax rate is 21 percent. What is the company worth today

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