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QUESTION 3 25 points Able Corp. is considere a new project with a three year Me Machinery cost are $2,000,000 and will require additional installation

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QUESTION 3 25 points Able Corp. is considere a new project with a three year Me Machinery cost are $2,000,000 and will require additional installation costs of 35,000. The equipment will be depreciated straight over three years to a salvage value. Working Capital needs are initially 5250,000 and will increase by 4% annually. Revenues are expected to be 5750,000 in the first year and increase annually Operating costs are expected to be $195.000 in year one and will increase at annually. The equipment is expected to be worth 510.000 or the end of the project. The marginal tax rates 34% Estimate the project ish flows for each period. For the toobat, press ALT-F20 (PC) or ALT+FN+F10 (Mac) BTU $ Paragraph Ara 1px ALI: XO WORDS POWERID

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