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You are considering starting a new factory producing small electric heaters. Each unit will soll at a price of $22. The production cost of each

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You are considering starting a new factory producing small electric heaters. Each unit will soll at a price of $22. The production cost of each heater is $12 You are expecting to sell 16500 units per year. This peoject has an economic life of 4 years. The project requires an investment of $375000 in plants and equipment. This equipment will be depreclated to zero salvage value based on 3-year MACRS schedule. The deprociation rates from year 1 to 4 are 33.33%,44.45%,14.81%, and 5.76 percent, respectively, The company wis seli lts old equipment for $70000. The old machine is fully depreciated. The required rate of retum for the project is 12 percent, the working cap tal requirement is 25 percent of the next year's sales revenue. The marginal corporate tax rate is 20 percent . At the termination of the project, the plant and equipment will be sold for an estimated value of 560000 . Based on these assumptions, estimate the total cash fows for the project. What is the total cash fow in the last year? 186998 137568 27630sin 00750

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