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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.

year 0 year 1 year 2 year 3 year 4
investment 34000
sales revenue 17500 18000 18500 15500
operating cost 3700 3800 3900 3100
depreciation 8500 8500 8500 8500
net working capital spending 400 4500 5000 400 ?

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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