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XYZ is an evaluating the Reno project. The project would require an initial investment of $ 1 5 0 , 0 0 0 . That

XYZ is an evaluating the Reno project. The project would require an initial investment of $150,000. That would be depreciated to $16,600 over six years using straight line depreciation. The project is expected to have operating cash flows of $48,200 Per year forever XYZ expects the project to have an after tax terminal value of $341,000 in 3 years the tax rate is 30% what is (X +Y )/Z . X is the projects relevant expected cash flow and year three Y is the projects relevant expected cash flow in year 5 and Z is the projects relevant expected cash flow in year 2

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