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TexMex Food Company is considering a new sales . under the new law the equipment would have zero salvage value and no change in net
TexMex Food Company is considering a new sales . under the new law the equipment would have zero salvage value and no change in net capital (NOW) Revenues and operating cots are expected to be constant over the project's 3-year life. What is the project's NPV? WACC 10% pre-tax cash flow reduction for other products (cannibalization) $4,000 Equipment cost $170,000 Annuals sales Revenues $72,500 Annuals operating costs $25,000 tax rate 25%
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