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SLThe Board of Directors of National Brewing Inc. is considering the aequisitirin of a new Slill- The still is priced at $600000 but would require

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SLThe Board of Directors of National Brewing Inc. is considering the aequisitirin of a new Slill- The still is priced at $600000 but would require $60,000 in transportation costs and $40,000 for installation. The still has a useful life of 7" years but will he depreciated over its 5year HACKS life. The applicable MERE depreciation rates are 20%: 32%: 19%? 12%: 11%? and 6%- It is expected to have a salvage value of $10000 at the end of "a" years. The still would increase revenues by $220000 per year and increase annual operating costs by $203000 per year. Additionally: the still would require a $303000 increase in net operating working capital. The rm\"s marginal tax rate is 40%: andthe project's cost of capital is 10%. a. What is the initial investment outlayr for the project: that is: what is the Year 0 project cash ow? b. What are the project's annual cash ows in Years 1, 2, 3, 4, 6, and T? c- What is the project' a NPV

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