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The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $ 4 0 . The unit cost of the giftware is
The following table presents sales forecasts for Golden Gelt Giftware. The unit price is $ The unit cost of the giftware is $ It is expected that net working capital will amount to of sales in the following year. For example, the store will need an initial Year investment in working capital of times times $ $ Plant and equipment necessary to establish the giftware business will require an additional investment of $ This investment will be depreciated straightline over years. The firm's tax rate is The discount rate is a What is the net present value of the project? Note: Do not round intermediate calculations. Round your answer to the nearest whole dollar amount. b By how much does NPV increase if the firm takes immediate bonus depreciation?
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