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The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash outlays are required to complete the plant: Year Cash Outlay
The Jacob Chemical Company is considering building a new potassium sulfate plant. The following cash outlays are required to complete the plant: Year Cash Outlay 0 $4,000,000 1 1,300,000 2 400,000 Jacobs cost of capital is 10 percent, and its marginal tax rate is 40 percent. Calculate the plants net investment (NINV). Use Table II to answer the questions. Round your answer to the nearest dollar. $ What is the installed cost of the plant for tax purposes? Round your answer to the nearest dollar. $
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