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The JD Corporation is considering a new three - year expansion project that requires an initial fixed asset investment of $ 4 , 0 0
The JD Corporation is considering a new threeyear expansion project that requires an initial fixed asset investment of $ The fixed asset will be depreciated straightline to zero over its fiveyear tax life, after which time it will be worthless. The fixed asset will be resold for $ at the end of the project. The project requires an initial investment in net working capital of $ which will be recouped at project end. The project is estimated to generate $ in annual sales, with costs of $ Assume the tax rate is percent and the required return on the project is percent.
The JD Corporation is considering a new threeyear expansion project that requires an initial fixed asset investment of $ The fixed asset will be depreciated straightline to zero over its fiveyear tax life, after which time it will be worthless. The fixed asset will be resold for $ at the end of the project. The project requires an initial investment in net working capital of $ which will be recouped at project end. The project is estimated to generate $ in annual sales, with costs of $ Assume the tax rate is percent and the required return on the project is percent.
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