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You are considering a new product launch for three years after which the project ends. The equipment for the project will cost $ 9 0

You are considering a new product launch for three years after which the project ends. The equipment for the project will cost $900,000, have a three-year life and a $200,000 salvage value. Depreciation is straight line to zero. Sales are projected at 200 units per year with a per unit price of $18,000 and variable cost per unit of $13,000.)Fixed costs are estimated to be $600,000 per year. The project requires maintaining net working capital t $20,000 throughout the project. The discount rate is 12% and the tax rate is 35%.(This question has three parts: a, b, and c).a. Create the project's income statement and compute operating cash
B. Compute the cash flow from assets
C. Compute the NVP of the project . Would you accept or reject

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