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The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 23 percent. Assume

image text in transcribed The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 23 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. o. Compute the incremental net income of the investment for each year. (Do not round Intermedlate calculations and round your answers to the nearest whole number, e.g., 32) b. Compute the incremental cash flows of the investment for each year. (A negatlve omount should be Indleated by a minus sign. Do not round Intermedlate calculetions and round your answers to the neorest whole number, e.g., 32.) c. Suppose the appropriate discount rate is 10 percent. What is the NPV of the project? (Do not round Intermedlate colculations and round your answer to 2 declmal ploces, e.g., 32.16.)

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