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Summer Tyme, Inc., is considering a new 3 - year expansion project that requires an initial fixed asset investment of $ 5 . 8 8

Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $5.886 million. The fixed asset will be depreciated straight-line to zero over its 3-year tax life, after which time it will have a market value of $457,800. The project requires an initial investment in net working capital of $654,000. The project is estimated to generate $5,232,000 in annual sales, with costs of $2,092,800.The tax rate is 33 percent and the required return on the project is 11 percent. Question 1: A)-7,194,000 B)-6,213,000 C)-5,886,000 D)-6,540,000 E)-6,867,000 Question 2: A)2,750,724 B)3,025,796 C)2,475,652 D)2,613,188 E)2,888,260 Question 3: A)2,750,724 B)2,888,260 C)2,025,796 D)2,475,652 E)2,613,188 Question 4: A)4,082,595 B)3,897,023 C)3,711,450 D)3,340,305 E)3,525,878 Question 5: A)2,608,585 B)928,682 C)835,985 D)-1,252,065 E)884,459
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