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Q1 12 Points 1. Textron is considering a NEW project. The financial projections are as follows: Year 0 Year 1 Year 2 Year 3 Sales

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Q1 12 Points 1. Textron is considering a NEW project. The financial projections are as follows: Year 0 Year 1 Year 2 Year 3 Sales 24,000 24,000 24,000 Total Costs 7,000 7,000 7,000 Depreciation 10,000 10,000 10,000 Capital Investment (or Cost of Equipment) 40,000 Working Capital (Requirements/Levels 2000 2500 1000 0 The Equipment will be sold at the end of Year 3 for 11,000. The relevant tax rate is 35%. Compute the cash flows for the project

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