Question: ABC Corp. Is evaluating a project to develop new printers. The project require capital expenditure of $100.000 today (Year o) The projected financials in Year

 ABC Corp. Is evaluating a project to develop new printers. The

ABC Corp. Is evaluating a project to develop new printers. The project require capital expenditure of $100.000 today (Year o) The projected financials in Year 1 are as follows: incremental sales for the project will be 560,000 Incremental cost of goods sold will be 516,000. total SG&A expense will be $6,000, but $2.000 of this amount is overhead that will be incurred even if the project is not accepted. the annual depreciation for the equipment required by the project will be $25,000 average tax rate is 20% and marginal tax rate is 30%. the level of net working capital (NWC) in Year 0 - 510,000, Year 1 NWC level - $22.000, Year 2 NWC level = $32.000 Your estimate of Year 1 free cash flow is $13.500 $22.100 OB $23.500 0.525.000 Moving to another question will save this response

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