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The Juniper Network Company is considering a new 5-year expansion project that requires an initial fixed investment of $2.5 million. The fixed asset will be
The Juniper Network Company is considering a new 5-year expansion project that requires an initial fixed investment of $2.5 million. The fixed asset will be depreciated straight 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 tax shield approach is defined as: Jing the tax shield approach, OCF for years 1 through 5 are estimated at \$ [Select] peryear Estimated annual sales for the project are $2.2 million with annual costs of $1.15mm. The project will als investment in NWC of $140,000. The tax shield approach is defined as: [ Select] Using the tax shield approach, OCF fo Question 9 annual sales for the project are $2.2 million with annual costs of $1.15mm. The project will also require an init nent in NWC of $140,000. shield approach is defined as: [ Select] tax shield approach, OCF for years 1 through 5 are estimated at $ [ Select] per year
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