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The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimate of the cost of the machine is $30,000 and

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The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimate of the cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year we to a residual value of 0. The cane manufacturing machine will result in sales of 2000 canes in year 1. Sales are estimated to grow by 10% per och three. The price per cane that Sisyphean will charge its customers is $18 each and is to remain constant. The canes have a manufacturing of each. Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working accounts. It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash, 4% of its annual sales in accounts recere, how sales in inventory, and 5% of its annual sales in accounts payable. The firm is in the 21% tax bracket, and has a cost of capital of 10% The required net working capital in the second year for the Sisyphean Corporation's project is closest to $3960 $4360. $3190. $5940

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