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You are evaluating a project for The Tiff-any goif club, guaranteed to correct that nasty slice You estimate the sales price of The Tiffany to

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You are evaluating a project for The Tiff-any goif club, guaranteed to correct that nasty slice You estimate the sales price of The Tiffany to be $450 per unit and sales volume to be 1,000 units in yeat 1,1,500 units in year 2 , and 1,325 units in year 3 . The project has a 3-year ufe. Variable costs amount to $250 per unit and fixed costs are $100,000 per year. The project requires an initial investment of $180,000 in assets, which will be depreciated straight-line to zero over the 3 -year project life. The actual market value of these assets at the end of year 3 is expected to be $40,000. NWC requirements at the beginning of each year will be approximately 30 percent of the projected sales during the coming year. The tax rate is 30 percent and the required return on the project is 12 percent. What change in NWC occurs at the end of year 1? (Enter o decrease os o negative amount using o minus sign.)

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