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You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty sice. You estimate the sales price of The Farstroke to

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You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty sice. You estimate the sales price of The Farstroke to be $460 per unit and sales volume to be 1,200 units in year 1,1,125 units in year 2 , and 1,000 units in year 3 . The project has a 3-year life. Variable costs amount to $255 per unit and fixed costs are $100,000 per yeat. The project requires an intial investment of $147,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $29.000 NWC requirements at the beginning of each year will be approximately 25 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is if percent What change in NWC occurs at the end of year T? (Enter a decreose os o negotive amount using a minus sign.)

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