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The Syphoon Corporation is considering investing in a new cane manufacturvig machine that has an estimated to of these years. The com of the machine

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The Syphoon Corporation is considering investing in a new cane manufacturvig machine that has an estimated to of these years. The com of the machine le $35.000 and the machine will be precluded straight line over its three year it to a residual value of 30 The cane manufacturing machine will result in set of 2000 canes in year 1 Ses are traded to grow by 10% per year each your rough your 3. The price pucane rot Seyhan will charge is customers each and is to remain constant. The canes have a cost per unit to manufacture of Seach Installation of the machine and the resulting increase in manufacturing capacity will requre an increase in various not working capital cons. It is estimated that the Sisyphoan Corporation needs to hold 2013 annual sales in cash 4% of its annual sales in accounts receivable, 9% of its annual sales in Inventory, and 5% of its annual sales in accounts payable. The firm is in the 3% tax bracket and has a cost of capital 10% The depreciation tax shield for the Sisyphon Corporation's project in the first year is closest to A $2,800 OB $10.500 OC $3,150 OD $3,500

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