would require an initial t of Sars,oo0 to replace 18 19 20 rojects c technology The replaced equipment could be sold immedately for $30,000 The new project would require an initial investment of 5875,000 to replace with newer s expected to generate incremental revenues of $380,000 and incremertal costs of 5175,000 25 annually. It would also require a 26 equipment is expected to last for 6 years, and to have no major overhaul at the end of 3 years, at a cost of $80,000. The 27 This project would require initial working capital of $60,000 28 29 Project B 30 The Initial investment for Project B would also be $875,000, and the project is expected to last 6 years 1This would be a new venture for Cubbies, so no existing equipment would be sold Because s 32 a new business, revenues are expected to grow froen $150,000 in year 1, to 5250,000 im year 2, to 33$450,000 annually n years 3 through 6 Likew se, costs aro estimated asx000 yer . 34 5175,000 in year 2, and $210,000 annually in years 3 through 6 The equipment is expected to have a 35 savage value of $90,000 at the end of 6 years 36 37 38 Hurdle Rate: 39The company believes that a hurdle rate of 8% is approprate for both then props 40 41 42 Instructions Template valuation Ready O Type here to search DOLL