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will have fixed costs associated with the product of $108,000 per year, and variable costs equal to 45% of revenues. a. What are the cash
will have fixed costs associated with the product of $108,000 per year, and variable costs equal to 45% of revenues. a. What are the cash flows for the project in years 0 through 5 ? b. Plot the NPV profile for this investment using discount rates from 0% to 40% in 10% increments. c. What is the project's NPV if the project's cost of capital is 10.5% ? d. Use the NPV profile to estimate the cost of capital at which the project would become unprofitable; that is, estimate the project's IRR. a. What are the cash flows for the project in years 0 through 5 ? Calculate the cash flows below: (Round to the nearest dollar.)
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