Consider a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The salvage val

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answerhappygod
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Consider a project that will require $80,000 in fixed assets and another $20,000 in net working capital. The salvage val

Post by answerhappygod »

Consider a project that will require $80,000 in fixed assets and
another $20,000 in net working capital. The salvage value is 0. The
project is expected to produce sales of $110,000 with associated
costs of $70,000. The project has a 4-year life. Fixed assets
belong to a 30% CCA class. The tax rate is 35%, and the discount
rate is 10%.
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