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Show all work! ABC Music, Inc. projects following unit sales for new Bluetooth speakers: Year 7-Year Year Unit Sales 14.29% 86,500 106,000 118,000 4109,000 24.49

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ABC Music, Inc. projects following unit sales for new Bluetooth speakers: Year 7-Year Year Unit Sales 14.29% 86,500 106,000 118,000 4109,000 24.49 3 17.49 4 12.49 5 8.93 6 8.92 8.93 4.46 5 91,000 are $230 per unit, and the units are priced at $355 each. The Total fixed costs are $1,450,000 per year, variable production costs equipmen seven-year MACRS speakers will require $1,500,000 all its projects of t needed to begin production has an installed cost of $24,000,000. This equipment is industrial machinery and qualifies as property. In five years, this equipment can be sold for 20 percent of its acquisition cost. Production of the in net working capital to start the project. Assume the tax rate is 25%, ABC has a required return on 18 percent. Based on these preliminary project estimates, what is the NPV, IRR, and Payback for this project? NPV = IRR Payback Period

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