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Please do the problem a taxe rate of 21% and find the NPV. Thank you Costs of test marketing (already spent): $250,000 Current market value

Please do the problem a taxe rate of 21% and find the NPV. Thank you image text in transcribed
Costs of test marketing (already spent): $250,000 Current market value of proposed factory site (which we own): $150,000. If project is accepted, mgt will sell site for $150,000 (after-tax) after year 5 Cost of bowling ball machine: $100,000 (depreciated according to MACRS 5 year) Machine will be sold at a price of $30,000 at the end of 5 years Increase in net working capital: $10,000. Subsequently net working capital at the end of each year will be equal to 10% of net sales for the year. In the final year of the project, net working capital will decline to zero as the project is wound down. In other words, investment in working capital is completely recovered by the end of the project's life. Production (in units) by year during 5-year life of the machine: 5,000,8,000, 12,000,10,000,6,000 The Baldwin Company - Price during first year is $20; price increases 2% per year thereafter. - Production costs during first year are $10 per unit and increase 10% per year thereafter. - Assume a tax rate of 34% (Repeat exercise with a tax rate of 21% ) - Annual inflation rate: 5% - Working Capital: initial $10,000 changes with sales

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