Question
The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40 percent. Assume
The Freeman Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 40
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.
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A Compute the incremental net incoming of investment for each year ( do not run intermediate calculation. )
B. Compute the incremental cash flows of investment for each year ( do not run intermiate calculation)
C Suppose the appropriate discount is 10 percent what is the Npv of the project.( do not do intermediate calculation run your answers to 2 decimal place)
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