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Questions 11 of 1 points Company Als implementing a capital expenditure project involving purchasing and installing new equipment. The equipment will cost $20,000 with an
Questions 11 of 1 points Company Als implementing a capital expenditure project involving purchasing and installing new equipment. The equipment will cost $20,000 with an additional 1.000 charge for delivery intins estimated to be $3.000. The equipment has an expected life of 5 years and estimated salvage value of $10,000. The project requires an additional working capital investment of 5.000. The project revenues are forecast at $25,000 per year and cash expenses are estimated at $8.000 per year. The firm has a 30 marginal tax rate and a 12 weighted average cost of capital, Annual depreciation is expected to increase type 54,800 per year, assuming simplified straight line depreciation. Calculate the one time end of project cash flows from this proposed project. $12.000 315.000 57.000 $17.000 None of the listed items is correct
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