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YE 5 Apiano manufacturer is considering a capital expenditure project involving purchasing and installing new equipment. The equipment cost will be $50,000, with an additional
YE 5 Apiano manufacturer is considering a capital expenditure project involving purchasing and installing new equipment. The equipment cost will be $50,000, with an additional 58.000 fine delivery, and installation is estimated to be $10,000. The equipment has an expected life of 10 years, and an estimated salvage value of $20,000. The project requires an additional working capital investment of 59,000. The project revenues are forecasted to be $10,000 per year and cash expenses are estimated at 515,000 per year. The firm has a 30% marginal tax ale and an 12 weighted average cost of capital (WACC). Calculate the annual tie cash flows from this project 512540 per year 511 940 per year $11.196.45 per year 2.57.807.50 per year None of the listed items is correct
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