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Your company is investigating the opportunity to invest $1,400,000 in a project that will produce MP3 players for the next 4 years The firm's
Your company is investigating the opportunity to invest $1,400,000 in a project that will produce MP3 players for the next 4 years The firm's marginal tax rate is 25% and the discount rate for the project is 20%. The accounting department and production operations department have estimated the following: After-tax Salvage Value $350,000 Annual OCF (for 4 years) Initial Investment in NWC $1,545,000 $70,000 What is the NPV of the project if the investment in NWC is recovered at the end of the project? $2,599,595 O-$847,454 O $2,802,141 O $2,732,11 O $2,879,595
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