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Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating expenses are expected to be constant over

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Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating expenses are expected to be constant over the project's 5 year expected operating life; annual sales revenue is $90,000 and cash operating expenses are $37,000 per year. The new equipment's cost and depreciable basis is $125,000 and it will depreciated by MACRS as 5 year property. The new equipment replaces older equipment that is fully depreciated but can be sold for $8,000. In addition, the new equipment requires an additional S5,000 of net operating working capital which can be fully recovered at the end of the project. The new equipment is expected to be sold for $10,995 at the end of the project in Year 5. The marginal tax rate is 28%, what is the project's initial Cash Outlay at Year 0? Using the information from problem 2 on Dominant Retailer, Inc., what is the Terminal Year Non-Operating Cash Flow at the end of Year 5? Using the information from problem 2 on Dominant Retailer, Inc., what is the NPV of the Project if Dominant Retailer's WACC is 12%

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