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The Bruins Den Outdoor Gear is considering fhe Eruins Den Outboor Gear is consideling a new 7 jear project to produce a new ient tre.
The Bruins Den Outdoor Gear is considering
fhe Eruins Den Outboor Gear is consideling a new 7 jear project to produce a new ient tre. The equipment necessary would cost $199 millon and be depryouted using straight-inee deptecisfion to a book value of zero. At the end of the peoject, the equipment can be sold for 10 percent of is initial cost The company belleves that it can seil 31,000 rents per year at a price d $99 and vansble cqse of $38 per tent. The fixed cost wist be 5545,000 pet year The proyect will require an intial investment in net working capital of $253,000 that will be fecoveled the end of the prolect. The required rate of return 8122 percent ond the lax fate is 23 percent. Whot is the NPP? Mut pe Choike $65707 5750900 ssiayet sics29x2 Step by Step Solution
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