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To manufacture an initial run of a machine the firm will invest $ 7 5 0 , 0 0 0 for manufacturing equipment, which should
To manufacture an initial run of a machine the firm will invest $ for manufacturing equipment, which should last six years, with straight line depreciation and no salvage value. The tax rate would be The initial selling price for a unit is $ Fixed costs, excluding taxdeductible depreciation expense, would be $ per year. a If you sell units per year, what it the payback period fo rthe initial investment? b What is the IRR c What would the selling price have to be to generate a NPV of $ at a discount rate
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