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please show work Foley Systems is considering a new project whose data are shown below. Under the new tax law, the equipment for the project
please show work
Foley Systems is considering a new project whose data are shown below. Under the new tax law, the equipment for the project is eligible for 100% bonus depreciation, so it will be fully depreciated at t=0. After the project's 3-year life, the equipment would have zero salvage value. The project would require additional net operating working capital (NOWC) that would be recovered at the end of the project's life. Revenues and operating costs are expected to be constant over the project's life. What is the project's NPV? (Hint: Cash flows from operations are constant in Years 1 to 3.) Do not round the intermediate calculations and round the final answer to the nearest whole number 10.0% $75,000 WACC Equipment cost Required net operating working capital (NOWC) $15,000 Annual sales revenues Annual operating costs Tax rate $73,000 $25,000 25.0% Step by Step Solution
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