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QUESTION 29 A company is trying to estimate the cash flows associated with a proposed project. The project will require an initial investment of $200,000

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QUESTION 29 A company is trying to estimate the cash flows associated with a proposed project. The project will require an initial investment of $200,000 in new equipment. Additionally, the project will require $15,000 in new networking capital at initiation of the project it will be recovered upon the projects completion). The new equipment will be depreciated using immediate expensing (100% bonus depreciation). This new project is expected to generate 5150,000 of revenue per year and $70,000 of operating costs per year. After two years, the company will see the equipment used for an estimated $40,000. The company's marginal tax rate is 25 Calculate the capital budgeting entries below. (round final answer to the nearest dollar - $12.34 should be entered as 12). Use a negative sign directly in front of the number to indicate a negative value. Year o Year O FCF 5 Year 1 Year 1 FCR 5 Year 2 After-tax salvage value: $ Year 2 FCS

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