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Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $589,470. The fixed asset will be depreciated

image text in transcribed Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $589,470. The fixed asset will be depreciated straight-line to 49,818 over its 3-year tax life, after which time it will have a market value of $127,923. The project requires an initial investment in net working capital of $78,305. The project is estimated to generate $202,660 in annual sales, with costs of $134,742. The tax rate is 0.24 and the required return on the project is 0.14 . What is the aftertax salvage value in year 3? (Make sure you enter the number with the appropriate +/sign) Summer Tyme, Inc., is considering a new 3-year expansion project that requires an initial fixed asset investment of $589,470. The fixed asset will be depreciated straight-line to 49,818 over its 3-year tax life, after which time it will have a market value of $127,923. The project requires an initial investment in net working capital of $78,305. The project is estimated to generate $202,660 in annual sales, with costs of $134,742. The tax rate is 0.24 and the required return on the project is 0.14 . What is the aftertax salvage value in year 3? (Make sure you enter the number with the appropriate +/sign)

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