A project requires a capital expenditure of $0.7 million today that can be depreciated straight line to

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A project requires a capital expenditure of $0.7 million today that can be depreciated straight line to zero over 2 years. The revenues for year 1 will be $2.1 million and the costs $1.8 million. The revenues for year 2 will be $3.5 million. There will no revenues or costs after year 2. The tax rate is 24%, and the cost of capital is 5.2%. What is the break-even level of costs for year 27 Report your answer in $ millions to three digits after the decimal?

Posted Date: Dec 06, 2021 10:29 PM

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A project requires a capital expenditure of $0.7 million today that can be depreciated straight line to

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07 million 2 024 187... View the full answer

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