Question: $ 4 , 0 0 0 , 0 0 0 Installation costs$ 1 0 0 , 0 0 0 Estimated unit sales in year 1
$Installation costs$Estimated unit sales in year Estimated unit sales in year Estimated unit sales in year Estimated sales price in year $Estimated sales price in year $Estimated sales price in year $Variable cost per unit$Annual fixed cost$Additional working capital needed$Depreciation method years straightline method, no salvage valueTexas Rok's tax rateTexas Rok's cost of capitalTasks:Calculate operating cash flow and the change in net working capital.Determine the NPV and IRR of the project. Should the company accept or reject the project based on the NPV or IRR? Why?What is your final accept or reject decision? Why?What is the payback period for this project? Would this influence your decision to accept or reject?
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