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Section ll: Short answer questions 02> Needle and Thread inc. is considering expanding one of its production facilities to build a new tine of sewing
Section ll: Short answer questions 02> Needle and Thread inc. is considering expanding one of its production facilities to build a new tine of sewing kits. The proje $250,000 for the equipment at the end of the proje investment and will be equally depreciated (straight-line) over its 4 year tife. They believe they can salvage $250,000. Incremental sales are expected to be $1,000,000 annually for the 4 year period with cash operating expenses of 43% of sates. The compare a 10% return on projects with a similar r working capital to the project of $700,000. The company is subject to a marginat tax rate B. What are the annual net cash flows associated with this project for C. What is the terminal cash flow in year 4
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