Question: 1. A capital expenditure project is that involves purchasing new equipment costing $20,000, with an additional $1,500 equipment has an expected life of 5 years

 1. A capital expenditure project is that involves purchasing new equipment
costing $20,000, with an additional $1,500 equipment has an expected life of

1. A capital expenditure project is that involves purchasing new equipment costing $20,000, with an additional $1,500 equipment has an expected life of 5 years and an estimated salvage value of $5,000. The proposed project will require forecasted to be 30,000 per year and cash expenses are expected to be $12,000. The firm has a 40% marginal tax rate Outlay for the proposed project. $28,500 $39,900 $40,500 $44,145 d None of the listed items is correct $20,000, with an additional $1,500 charge for delivery. Installation of the equipment is expected to be $4,000. The The proposed project will require an additional working capital investment of $3,000. Revenues for the project are e firm has a 40% marginal tax rate and a 9% weighted average cost of capital (WACC). Calculate the initial Cash

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