Question: PUTZ believes that fixed costs for the project will be $ 6 1 5 , 0 0 0 per year, and variable costs are 1
PUTZ believes that fixed costs for the project will be $ per year, and variable costs are percent of sales. The equipment necessary for production will cost $ million and will be depreciated according to a threeyear MACRS schedule. At the end of the project, the equipment can be scrapped for $ Net working capital of $ will be required immediately. PUTZ has a tax rate of percent, and the required return on the project is percent. MACRS Schedule What is the NPV of the project?
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