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Save Antwur 10 pont ABC Company is considering manufacturing a new style of short, whose data are shown below. The equipment to be ined would

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Save Antwur 10 pont ABC Company is considering manufacturing a new style of short, whose data are shown below. The equipment to be ined would be depreciated by the straight line method over its 5 year life and would have a zero salvage value and would require additional NWC by 34,000 Revenues and other operating costs are expected to be constant over the project's 5-year life. However, this project would compete with other Weston's products and would reduce the pre-tax annual cash flows. What is the project's NPV? WACC 10.0% Pre-tax cash flow reduction for other products $8.000 Investment cost (depreciable basis) $80 000 Shipping and Installation cost $10,000 Sales revenues, each year for 5 years $63.000 Annual operating costs (excl deprec.) $27,000 Tax rate 35%

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