Question: Crane Company management is considering a project that will require an initial investment of $ 5 4 , 0 0 0 and will last for
Crane Company management is considering a project that will require an initial investment of $ and will last for years. No other capital expenditures or increases in working capital are anticipated during the life of the project. What is the annual EBIT that will make the project economically viable if the cost of capital for the project is percent and the firm will depreciate the investment using straightline depreciation and a salvage value of $ Assume that the marginal tax rate is percent. Do not round intermediate calculations. Round factor values to decimal places, eg and final answer to decimal places, eg
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