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Use the following information to answers questions 9 to 11. (Short Answer- Chapter 6) The Down Towner is considering a project with a life.of 4

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Use the following information to answers questions 9 to 11. (Short Answer- Chapter 6) The Down Towner is considering a project with a life.of 4 years that will require $165,000 for fixed assets. Current assets are expected to increase by $22.400 and current lilabilities will decrease by $20,000. The fixed assets will be depreciated straight-line to a zero book value over 5 years. At the end of the project, the fixed assets can be sold for $37,500 cash and current assets and liabilities will return to their original level. The project is expected to generate annual sales of $195,000 and costs (excluding depreciation) of $1 17,500. The tax rate is 24 percent and the required rate of return is 13 percent What is the initial investmen at time O for the project? BIUA- A IE x, E T T 12pt Paragraph

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