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Yummy Foods is considering a new salsa product whose data are shown below. The equipment that would be used has a 3-year tax life, would

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Yummy Foods is considering a new salsa product whose data are shown below. The equipment that would be used has a 3-year tax life, would be depreciated by the straight line method over the project's 3-year life, would have zero salvage value, and no new working capital would be required. Revenues and other operating costs are expected to be constant over the project's 3-year life. What is the project's NPV? WACC 10% Net initial investment $65,000 Straight line depr'n rate 33.33% Sales revenues $70,000 Operating costs excl. depr'n $30,000 Tax rate 35% O $21.214.55 O $19.892.34 $20.118.78 $18,516.78 $17.455.87

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