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What will have to be the annual OCF for the project to have a NPV = 0 in the following situation: A client is interested
What will have to be the annual OCF for the project to have a NPV in the following situation:
A client is interested in buying microwaves a year from you for years. To be able to produce these microwaves, you need to invest in $ in equipment. The equipment has a taxable life of years and will be depreciated using straight line. At the end of the years, the equipment can be sold for $market or scrap value The variable cost of producing the microwaves is $ per unit and you will incur in a fixed cost of $ a year. You have estimated you will need $ today in working capital. The appropriate discounting rate for this type of project is The corporate tax rate applicable to you in this case is
For your answer, do not enter the dollar sign $ DO NOT use commas, and you can round to zero decimals the nearest dollar
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