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Revenues Cost of goods sold SG&A costs interest expense equipment depreciation sale of equipment working capital needed income tax rate required rate of return year
Revenues Cost of goods sold SG&A costs interest expense equipment depreciation sale of equipment working capital needed income tax rate required rate of return year 1 2000 for years 2-5, it will grow each year by 5% 40% and it goes down by 1% per year for years 2-5 200 and increases by 2% 50 same for all years per year for years 2-5 2000 purchased at the beginning of the project (time 0) 5 year useful life, zero salvage value 100 at the end of the project 10% of next year's revenues 35% 15% 3 pts Question 8 Determine the NPV of the cash flow for the more challenging problem in the spreadsheet tab labelled "NPV of CFs" Comment: this is a challenging problem, so it is worth 3 points. If the answer is $123,456,78 enter as 123456.78
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