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Question 30 4 pts Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the
Question 30 4 pts Atlantic Manufacturing is considering a new investment project that will last for four years. The delivered and installed cost of the machine needed for the project is $22,644 and it will be depreciated according to the three-year MACRS schedule. The project also requires an initial increase in net working capital of $307. Financial projections for sales and costs are in the table below. In addition, since sales are expected to fluctuate, NWC requirements will also fluctuate. The end-of-year NWC requirements are included below (hint: these NWC capital requirements DO NOT represent the change in NWC for the period). The $0 requirement for NWC at the end of year 4 means that all NWC is recovered by the end of the project. The corporate tax rate is 35% and the required return on the project is 12%. Year 1 2 3 4 Sales $11,764 $12,001 $13,892 $10,328 Costs 2,323 2,950 3,452 1,221 NWC 324 353 208 0 Requirements What is the project's NPV? (Round answer to 2 decimal places. Do not round intermediate calculations)
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