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Thomson Media is considering some new equipment whose data are shown below. The equipment has a 3 - year tax life and would be fully
Thomson Media is considering some new equipment whose data are shown below. The equipment has a year tax life and would be fully depreciated by the straightline method over years, but it would have a positive pretax salvage value at the end of Year when the project would be closed down. Also, additional net operating working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's year life. What is the project's NPV Do not round the intermediate calculations and round the final answer to the nearest whole number. WACC Net investment in fixed assets depreciable basis $ Required net operating working capital $ Straightline depreciation rate Annual sales revenues $ Annual operating costs excl depreciation $ Expected pretax salvage value $ Tax rate
Thomson Media is considering some new equipment whose data are shown below. The equipment has a year tax life and would be fully depreciated by the straightline method over years, but it would have a positive pretax salvage value at the end of Year when the project would be closed down. Also, additional net operating working capital would be required, but it would be recovered at the end of the project's life. Revenues and other operating costs are expected to be constant over the project's year life. What is the project's NPV Do not round the intermediate calculations and round the final answer to the nearest whole number.
WACC
Net investment in fixed assets depreciable basis $
Required net operating working capital $
Straightline depreciation rate
Annual sales revenues $
Annual operating costs excl depreciation $
Expected pretax salvage value $
Tax rate
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