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The Weyland - Yutani Corporation is considering a new four - year expansion project that requires an initial fixed asset investment of $ 4 0
The WeylandYutani Corporation is considering a new fouryear
expansion project that requires an initial fixed asset investment
of $ The fixed asset will be depreciated straight line to
zero over its fouryear tax life. The fixed asset will have a market
value of $ at the end of the projects life. The project
requires an initial investment in net working capital of $
The working capital will be recovered at the end of the projects
fouryear life. The project is estimated to generate $ in
annual sales, with annual costs of $ The tax rate is
percent and the firm uses an abnormally high discount rate of
percent for the project.
Compute the initial investment CF on this project.
a $
b $
c $
d $
e $
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