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what is the terminal value (TV)? what is the NPV value of the project? 76% 19:47 DONE Use the following data to answer Questions 1
what is the terminal value (TV)? what is the NPV value of the project?
76% 19:47 DONE Use the following data to answer Questions 1 through 14: Fool Proof Software is considering an expansion project that has a life of four years. The proposed project has the following features: Initial cost of the equipment is $200,000, with shipping cost of $10,000 and installation cost of $30,000. The company will also pay $25,000 for research purposes related to the equipment. The equipment will be depreciated over 4 years using MACRS at the following rates (33%, 45%, 15%, and 7%). Inventories will increase by $25,000, and accounts payable will rise by $5,000. The company will sell 100,000 units per year with a price of $2/unit. The company's total operating cost will equal to $120,000 each year. . At t=4, the equipment's salvage value is $25,000. The company's tax rate is 40%. . The project's WACC is 10%Step by Step Solution
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