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Project cash flow and NPV. The managers of Classic Aulos Incorporated plan to manufacture classic Thunderbirds (1957, repican). The nocessary foundry egulpment wit cost a

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Project cash flow and NPV. The managers of Classic Aulos Incorporated plan to manufacture classic Thunderbirds (1957, repican). The nocessary foundry egulpment wit cost a sotal of $4,300,000 and will be dopreciated using a fiveyear MeACRS Hf. Prejeched sales in anthial units for the next five years are 320 per year. If the sales price is 526,000 per car, varable costs are $16.000 per cac, and foed costs are 51,200,000 annually, what is the arnual operaing cash fow if the tax cate is 40% ? The equpment is soid for calvage for $550,000 at the end of yoar fve. What is the afler tax cash fow of the saivage? Not working capital increases by $625,000 at she beginning of the project ( rear 0 ) and is reduced back bo its onginal level in the final year. What is the incremental cosh fow of the project? Using a discount rate of 13th for the project, determine whether the project should be accepled or tepected according to the NPV decision model

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