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Please show how to solve. thank you Logico Ltd. is considering investing in a project that has a 7-year life. Data relating to this project
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Logico Ltd. is considering investing in a project that has a 7-year life. Data relating to this project is as follows: Initial investment $643347 Residual value (at the end of 7 years) $196930 The project is expected to provide the following: Sales Variable expenses Fixed costs Years 2-7 $468066 210630 144639 All of the above amounts represent cash flows, with the exception of depreciation. (depreciation is included in the above costs) Logico depreciates its assets using the straight- line method. What are the expected annual cash flows in years 2-7 relating to this investment? Select one: a. $204704 b. 5451189 c. $176571 O d. 5257436Step by Step Solution
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