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The Windsor Corp. is considering a new 6-year project to produce a new line of products. The equipment necessary would cost $135 million and be

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The Windsor Corp. is considering a new 6-year project to produce a new line of products. The equipment necessary would cost $135 million and be fully depreciated using straight-line depreciation over the life of the project. At the end of the project, the equipment can be sold for 10 percent of its initial cost. The company believes that it can sell 25.000 items each year at a price of $67 and variable costs of $27 per item. The fixed costs will be $425,000 per year. The project will require an initial investment in net working capital of $205,000 that will be recovered at the end of the project. The firm's WACC is 9.25% The project is slighity riskier than the firm so Windsor Corp, has recommended an adjustment factor +1.15% to account for the increased riskiness. The appropriate tax rate is 35 percent. What is the Operating Cash Flow of this project in Year 2? $962,718 $522,276 $452,500 $362,602 O $639,997 What is the After Tox Salvage Value of the equipment needed for this project? O $962,718 O $639,997 $362,602 $522,276 $87,750 What is the Cash Flow From Assets in Year 6? What is the NPV of this project? ould this project be accepted? Why or why not? Clearly explain your

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