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Will rate please show work Problem 3 Fantastic Flooring (FF) is a carpet wholesale company. FF is considering building a new inventory warehouse for $400,000.

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Problem 3 Fantastic Flooring (FF) is a carpet wholesale company. FF is considering building a new inventory warehouse for $400,000. The warehouse would allow FF to increase their pre-tax cash flows by $50,000 each year. The company would plan to use the warehouse for 20 years before selling it for $200.,000. The company uses straight-line depreciation with a useful life of 20 years and assumes no salvage value. FF's tax rate is 30%, and the required rate of return is 10%. Requirements . Compute the net present value (NPV) of this project. Should FF accept it? (6 points) 2. What is the minimum increase in pre-tax cash flows required for FF to accept this project? (4 points)

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