Question: A new project involves the purchase of a $ 9 0 0 0 food processing machine. The machine would be depreciated on a straight -
A new project involves the purchase of a $ food processing machine. The machine would be depreciated on a straightline basis over its year useful life to a book value of $ At the end of the life of the project at the year point the machine will be sold for an estimated $ The project will cause an increase in Sales of $ in each of years through It is also expected to enhance efficiencies and reduce operating expenses by $ in each of years through The project will require an increase in Accounts Receivable of $ and an increase in Accounts Payable of $ up front. The project's impact on these accounts is expected to disappear at project end in year The firm's marginal tax rate is and its WACC is The NPV of this project is $
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