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please help asap I don't have Tim please ABC Systems is considering a new project with a 4-year economic life. The project's equipment would cost
please help asap I don't have Tim please
ABC Systems is considering a new project with a 4-year economic life. The project's equipment would cost $80,000 and be depreciated using the MACRS 3-year rates (33%, 45%, 15%, and 7%), and it would have no salvage value. Net working capital would need to be increased by $15,000 at the beginning of the project, but it could be recovered at the end of the project's life. Revenues are expected to be constant at $75,000 over the project's life, and operating costs are expected to be constant at $25,000 over the project's life. The tax rate is 35%, and there is no inflation. What are the net cash flows in Year 0 and Year 4? -$80,000; $34,460 -$95.000; $49,460 -$80,000: $43,860 - $80,000: $49,460 - $95,000; $43,860 Question 15 (1.33 points) Your company is going to invest in a new piece of equipment that costs $75,000. The equipment's depreciation rates are 33%, 45%, 15%, and 7% for Years 1 through 4. Sales revenues will be $60,000 each year, and operating costs will be $35,000. If the tax rate is 35%, what is the Year 1 cash flow? 16250 19856 25680 24913 A project will generate the following cash flows: -$1,250 in Year 0; $325 in Year 1; $350 in Year 2; $375 in Year 3; $400 in Year 4; and $425 in Year 5. If the company's cost of capital is 11%, what is the project's Modified IRR? 13.00 13.95 14.48 14.25 Step by Step Solution
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