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The managers of ABC Corporation plan to manufacture replacement heat shields for the NASA shuttle program. They expect to sell 10,000 shields annually for the

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The managers of ABC Corporation plan to manufacture replacement heat shields for the NASA shuttle program. They expect to sell 10,000 shields annually for the next 5 years at a sales price of $300 each. The necessary machining equipment will cost a total of $2,000,000 and will be depreciated straight-line over the project's 5-year life. The firm expects to be able to sell the manufacturing equipment for $250,000 at the end of the 4th year. There will be an initial increase in spending of $175,000 for net working capital. Variable costs are $50 per unit and fixed costs are $500,000 per year. Assume a 30% tax rate. Use the weighted average cost of capital (WACC) from the BD Corporation question for your discount rate. What is the Net Present Value (NPV) of this project? Should we accept/reject this project? Group of answer choices $2,629,303.393 / Accept $2,765,645.268 / Accept $2,750,451.121/Reject $2,750,451.121/Accept Gordon Gecko is 25 years old today and is beginning to plan for his retirement. He wants to set aside equal amounts for the next 40 years so that he can retire at age 65. He expects to live to a maximum age of 90 and wants to be able to withdraw $50,000 per year for 25 years at the beginning of each year. The account is expected to earn 8% APR for the working period and 5% APR for the retirement period. How much must he invest at the end of each month to achieve this goal? Group of answer choices $220.3902 $211.9537 $238.0214 $2,856.574

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