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The Slyphen Corporation is considering investing in a new cane manufacturing machine that has an estimated te of three years. The cost of the machine

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The Slyphen Corporation is considering investing in a new cane manufacturing machine that has an estimated te of three years. The cost of the machine is $30.000 and the machine will be depreciated straight line over its three year life to a residual value of $0 The cane manufacturing machine will result in sales of 2400 canon in year 1. Salts are estimated to grow by 10% per year each year through you 3. The price per cane that Syphain will charge its customers $15 each and is to remain constant. The canes have a cost per unit to manufacture of sto each Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various not working capital accounts. It is estimated the Suprem Corporation needs to hold 2x annual sales in cash, 5% of its annual sales in accounts receivel,0% of its all in inventory, and of sales in accounts payable. The firm in the track and has a cost of capital of The required networking capital in the first year for the Stuphean Corporation project is close to OA - $3,240 O.B. 53.564 OC $3,240 OD 58.280 The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a residual value of $0. The cane manufacturing machine will result in sales of 2400 canes in year 1. Sales are estimated to grow by 10% per year each year through year 3. The price per cane that Sisyphean will charge its customers is $15 each and is to remain constant. The canes have a cost per unit to manufacture of $10 each. Installation of the machine and the resulting increase in manufacturing capacity will require an increase in various net working capital accounts. It is estimated that the Sisyphean Corporation needs to hold 2% of its annual sales in cash, 5% of its annual sales in accounts receivable, 9% of its annual sales in inventory, and 7% of its annual sales in accounts payable. The firm is in the 35% tax bracket and has a cost of capital of 9%. The required net working capital in the first year for the Sisyphean Corporation's project is closest to: A) -3,240 B) 3,564 C) 3,240 D) 82801

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