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You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The Farstroke to
You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty slice. You estimate the sales price of The
Farstroke to be $ per unit and sales volume to be units in year ; units in year ; and units in year The project
has a year life. Variable costs amount to $ per unit and fixed costs are $ per year. The project requires an initial
investment of $ in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the
end of year is expected to be $ NWC requirements at the beginning of each year will be approximately percent of the
projected sales during the coming year. The tax rate is percent and the required return on the project is percent.
What change in NWC occurs at the end of year Enter a decrease as a negative amount using a minus sign.
Increase of
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