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pls help me Gateway Communications is considering a project with an initial fixed assets cost of $1.67 million that will be depreciated straight-line to a
pls help me
Gateway Communications is considering a project with an initial fixed assets cost of $1.67 million that will be depreciated straight-line to a zero book value over the 10-year life of the project. At the end of the project the equipment will be sold for an estimated $225,000. The project will not change sales but will reduce operating costs by $380,000 per year. The tax rate is 21 percent and the required return is 9.9 percent. The project will require $45,000 in net working capital, which will be recouped when the project ends. What is the project's NPV? Multiple Choice $421,475 $468,125 $440,633 $421,475 $468,125 $440,633 $503,079 $486,850 Step by Step Solution
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