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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 2 1 percent.
The Fancy Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 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 Year Year Year Year
Investment $
Sales revenue $ $ $ $
Operating costs
Depreciation
Net working capital spending
a
Compute the incremental cash flows of the investment for each year.
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