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The Juniper-Network Company is considering a new 5-year expansion project that requires an initiai fixsed investment of $2.5 milition. The fixed asset will be depreciated

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The Juniper-Network Company is considering a new 5-year expansion project that requires an initiai fixsed investment of $2.5 milition. The fixed asset will be depreciated stratght line to zero over its five year tax life, atter which time it will be worthless. The applicable tax rate is 22%. The company's analyst expects that the fixed asset can be sold for $200,000 at the end of its life. 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 salvage cash flow associated with the project is $ ; this will change the net ash flow in year 5 to 5

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