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Suppose that you are considering shifting your business from its lease in North Columbia to downtown Columbia for the next four years. Getting out of

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Suppose that you are considering shifting your business from its lease in North Columbia to downtown Columbia for the next four years. Getting out of your current lease requires a $5,000 buyout to be paid. The expected increase in leasing costs is $12,000 annually while you expect EBIT to increase by $20,000 (does not include leasing cost). If your company has a tax rate of 25%, the initial investment cost is , the increase in incremental cash flows at the end of each of the next four years is while the terminal cash flow is Based on the cash flows over the next four years and a discount rate of 10%, the projected net present value is (a) $5,000;$6,000;$0;$17,744.72 (b) $0;$8,000;$6,000;$22,744.72 (c) $5,000;$6,000;$20,000;$17,744.72 (d) $6,000;$6,000;$0;$28,744.72

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