Question: Rose Weiser Company Management is considering a project that will require an initial investment of $50,000 and will last for 10 years. No other capital

Rose Weiser Company Management is considering a project that will require an initial investment of $50,000 and will last for 10 years. No other capital expenditures or increases in working capital are anticipated during the life of the project. What is the annual EBIT that will make project economically viable if the for the project is 9 percent and the firm will depreciate the investment using straight-line depreciation and a of $0? Assume that the marginal tax rate is 40 percent.

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