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QUESTION 41 The BBM Corp. is considering the expansion into the production of Wuk, a revolutionary new product. The firm has forecasted the following Information
QUESTION 41 The BBM Corp. is considering the expansion into the production of Wuk, a revolutionary new product. The firm has forecasted the following Information with the expansion and without. The firm is in the 35% marginal tax bracket Level with Expansion Level without Expansion Revenue (yrs. 1-5) $47.5 million $40 million Expenses (yrs. 1-5) $29.5 million $27.5 million Depreciation (yrs 1-5) $14 million $12.5 million Equipment (year 0) $80 million $72 million Inventory (year) $3.6 million $2.9 million Accounts payable (year 0) $2.6 million $2.2 million The net cash outflow in year from the production of Wuk is: A. 580 million B. 58 million C. 58.3 million D. 59.1 million E. $80,3 million
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