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Use the APV method to value the following 2-year project. Answer the related questions that follow. Recommendation: write out the detailed calculations first, then answer

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Use the APV method to value the following 2-year project. Answer the related questions that follow. Recommendation: write out the detailed calculations first, then answer the questions accordingly. The questions ask for various pieces of this problem, but not every element Revenues, yrs. 1-2: 300/yr. expense, yrs. 1-2: 120/yr. equipment cost, yr. 0: -80 (straight-line depr. over 2 year life to 0 salvage) Tax rate-30% Rp=9%; Rp 4%, EV-2000, MVeq=1500 assume D/E ratio remains constant . . D Question 20 5 pts The Free Cash Flow (FCF) amount in year 0 is $. Rounding and Formatting instructions: Do not enter dollar signs, percent signs, or commas in your response. Do not round any intermediate work, but round your final response to 2 decimal places (example: if your answer is 12.3456, you should enter 12.35). If your answer is negative, be sure to enter a negative sign preceding the number. Margin of error for correct responses is: +/- 1

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