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Abhay Communications is looking to invest in a new website which will require an investment of $4,100,000. The asset will be depreciated to zero over
Abhay Communications is looking to invest in a new website which will require an investment of $4,100,000. The asset will be depreciated to zero over it's 3 year life using the straight line method. After that it will be worthless (has no salvage value). The management team feels that the updated website will result in an additional $2,600,000 in sales each year with annual operating cost of $290,000. The tax rate is 25% and the discount rate is 13%. This is a three year project. Fill in the following information. Cash Flow at time 0 - Develop operating cash flow. Label the row and fill in the value Sales Earnings before Tax (EBT) Tax depreciation Operating Cash Flow (OCF) Show values entered in calculator CFO C01 F01 13 NPV accept or reject project
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