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Suppose Blue Thumb Tools is considering the introduction of a new, heavier hammer to be used for driving spikes. The new hammer will cost $
Suppose Blue Thumb Tools is considering the introduction of a new, heavier hammer to be used for driving spikes. The new hammer will cost $ The cost will be depreciated straightline to zero over the projects fiveyear life, at the end of which the new hammer can be scrapped for $ The new hammer will generate $ in sales with $ total costs per year, and it required an initial investment in net working capital of $ The tax rate of the firm is What are the cash flows of firms new project?
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