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The funiper Network Company is corisidering a new 5 -year expansion project that requires an initbai fixnd imvestment of $2.5 milion. The fiked asset will

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The funiper Network Company is corisidering a new 5 -year expansion project that requires an initbai fixnd imvestment of $2.5 milion. The fiked asset will be depreciated striight line to zero over its five year tax life, after which time it will be worthless. The applicable tax rate is 22%. Estimated annual sales for the project are $2.2 million with annual costs of $1.15mm. The project will also require an initial investment in NWC of $140.000. The net cash flow for year 0 is estimated to be $ The net cash flow in year 3 is estimated to be $ he net cash flow in year 5 is estimated to be 5

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