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Subject 1 (20%) A company is planning a project and 30,000 is the amount that is required to be paid for starting this project. There
Subject 1 (20%) A company is planning a project and 30,000 is the amount that is required to be paid for starting this project. There is not any salvage value (resale value after depreciation is complete at the end of its useful life of the project). Depreciation is expensed on a straight-line basis (meaning the same amount is expensed in each period over the asset's useful life). The total revenues per year are 12,000 (cash inflows). Also, the expenses are expected to decrease by 5,000 per year. The project is expected to have 3 years useful life. Last, the tax rate is 10%. Using this information, you are required to: a. Calculate the project's cash flows throughout its three-year period and its net present value at 12% discount rate. (Assume rounding and no decimal points at euro amounts). Should the company make this project
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