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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $958,870. The fixed asset will be depreciated
Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $958,870. The fixed asset will be depreciated straight-line to 29,576 over its 3-year tax life, after which time it will have a market value of $126,026. The project requires an initial investment in net working capital of $40,983. The project is estimated to generate $208,768 in annual sales, with costs of $122,574. The tax rate is 0.36 and the required return on the project is 0.09 . What is the total cash flow in year O? (Make sure you enter the number with the appropriate +/ - sign)
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