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Your firm manufactures a generic low-cost product. To be more competitive, you are considering expanding your product line with a new premium version of your

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Your firm manufactures a generic low-cost product. To be more competitive, you are considering expanding your product line with a new premium version of your product Below are the detail - cost of new equipment: $90,000 - installation cost of equipmentL $40,000 - life of equipment: 5 years straight line depreciation - expected sales: $170,000 per year - expected reduction in sales of generic product customer shift to the new line: $10,000 per year - raw material cost: $90,000 per year - new worker salary: $20,000 - Required Net working capital over the life of the project: $20,000 - Expected salvage value of equipment at the end of 5 year: $30,000 - tax rate: 35% assuming a WACC of 15%, what is the project's NPV? a. 14,322 b. 22,491 c. 5,017 d, 2,068 e. e. 9,766

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