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Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas) The necessary foundry equipment vwill cost a

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Project cash flow and NPV. The managers of Classic Autos Incorporated plan to manufacture classic Thunderbirds (1957 replicas) The necessary foundry equipment vwill cost a total of $3,900,000 and will be depreciated using a five-year MACRS ife, EEB The sales manager has an estimate for the sale of the classic Thunderbirds. The annual sales voiume wit be as follows. Year one: 250 Year two. 270 Year three: 350 Year four: 370 Year five: 300 is S28,000 per ca va able costs are S18,000 per car, and fixed costs are si 400,000 annually, what is the annual operating cash o f the tax rate is 30%? The e p ents sold fo s age for S500,00 at the al increases by $600,000 at the beginning of the project (year 0) and is reduced back to its onginal level in the final year. Find the internal rate of return for the project using the incremental cash end of year five. Net working capita flows

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