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Please help with the following problem below. The question is in bold. Thank you! Andronicus Corporation has the following jumbled information about an investment proposal:

Please help with the following problem below. The question is in bold. Thank you!

Andronicus Corporation has the following jumbled information about an investment proposal:

Revenues in each of years 13 = $39,000 Year 0 initial investment = $59,000 Inventory level = $19,500 in year 1, $21,900 in year 2, and $14,500 in year 3 Production costs = $12,700 in each of years 13 Salvage value = $13,900 in year 4 Depreciation = 100% immediate bonus depreciation Tax rate = 21% Customers pay with a 6-month lag

Draw up a set of cash flow forecasts. If the cost of capital is 10%, what is the projects NPV? Assume that if the project generates losses, those losses can be used to offset profits elsewhere in the business.

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