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Your firm manufactures a generic low cost peodact. To be mote competitive, yoe are considering expanding your product leno with a new premiam version of

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Your firm manufactures a generic low cost peodact. To be mote competitive, yoe are considering expanding your product leno with a new premiam version of your product. Aelow are the detaith. - Cost of new equipment: 390.000 - Inatallation cost el equipnent: $40,000 - Life of equipment: 5 years, Straight line Eepeceiation - Fxpected alet: 5170,000 per year - Fxpected todastion in sales generie product as custeeners ahif to the new line: 510,000 per year - Raw material cost 590 o00 per year - New woker maryi $20,000 per year - Hegaired Net aceking capital over the life of tor preject: 320,000 - Irpecteal Salvage value of equipmeet at the eed of 5 year: \$30,000 - Tax rase: 35% Aenamisc a WACC of 13%, what is tis project's NPV? 2. 3,6,6s. the 6610 c. 12,708

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