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The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume

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The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. Year 0 Year I Year 2 Year 3 Year 4 Investment $24,000 Sales revenue $12,500 $13,000 $13,500 $10,500 Operating costs 2,700 2,800 2,900 2,100 Depreciation 6,000 6,000 6,000 6,000 O Zoom image Net working capital is invested at the beginning of the project with an amount of $2000 and can be withdrawn at the end of the project. a. Compute the EBIT and net income of the investment for each year. b. Compute the operating cash flow and cash flow from assets for each year. c. Suppose the appropriate discount rate is 12 percent. What is the NPV of the project

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