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The project has the following information: straight-line depreciation to zero, Initial investment in fixed assets = $20,000; required level of net working capital = $5,000;
The project has the following information: straight-line depreciation to zero, | ||||
Initial investment in fixed assets = $20,000; required level of | ||||
net working capital = $5,000; life = 4 years; Sales = $17,000 per year; | ||||
total annual costs=$7000, no salvage value; tax rate = 35%. | ||||
What is NPV if the discount rate = | 18% |
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