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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 24 percent. Assume
The Best Manufacturing Company is considering a new investment Financial projections for the investment are tabulated here. The corporate tax rate is 24 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. Yeart Year 2 Year 3 Year 4 Year 0 $26.700 Investment Sales revenue Operating costs Depreciation Net working capital spending $13.800 $ 15.400 $ 16.800 $ 13.300 3.100 3.200 4600 3.200 6.675 6,675 6.675 6.675 220 265 320 170 a. Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) Year Year 4 1 of 2 Next >
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