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You must strategicaly analyze the feasibility of a potential AvON new product-AVON Young Skin Tube. AvON Young Skin Lot thinks they can sell 115,000 tubes

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You must strategicaly analyze the feasibility of a potential AvON new product-AVON Young Skin Tube. AvON Young Skin Lot thinks they can sell 115,000 tubes per year at a price of $4 each for 3 years, after which the product will be obsolete. The required equipment would cost $150.000, plus another $25.000 for shipping and installation. Current inventory would increase by $35,000, while current account payable would rise by $15,000. Variable costs would be 60 percent of sales revenues, and the fixed assets would be depreciated under MACRS with a 3-year life (see below). When production ceases after 3 years, the equipment should have a salvage value $13900. AvON Young Skin Tube's tax rate is 40 percent and it uses a 10 percent WACC for average-risk projects. Find the required Year 0 investment, the annual after-tax operaing cash flows, and the terminal year cash flow, and then calculate the project's NPV, IRR, MIRR, and payback. Terminal Year Cash Flows ote: The question do not need to add tax on salvago value and Yet Cash Flow (Time line of cash flows) Wow calculate the project's NPY, IRR. MIRR, and paybsck. Do these indicators suggest that the project should be

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