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Project Q is expected to produce and sell 3 million units per year, priced at $24.99. The costs of producing are estimated to be $17.08

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Project Q is expected to produce and sell 3 million units per year, priced at $24.99. The costs of producing are estimated to be $17.08 per unit. The equipment and project will last for 4 years. Annual operating expenses are estimated to be $8 million per year. The initial cost of machinery for Project Q is $40 million and will last for 4 years. Calculate the Year 1 Incremental EBIT produced by Project Q. (answer in millions using 2 decimal places or more: Example; $1,234,567 should be entered as 1.23,$9,876,543 should be entered as 9.88 or 9.876 ) Margin of Error= 0.01 Question 21 8 pts From Question 20, Project Q will require a $2 million increase in Net Working Capital that will be recovered at the end of Year 4 . The tax rate for the firm considering Project Q is 25%. The WACC is 10%. Determine the NPV for Project Q. (Enter NPV in millions up to 2 decimal places or more: Example; $1,234,567 should be entered as 1.23) Margin of Error =0.05

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