Question: Financial Management. Please answer below. (9) URI is considering a 10-year project. The cost of the equipment and building will be $2.46 million. They will

Financial Management. Please answer below.

Financial Management. Please answer below. (9)
(9) URI is considering a 10-year project. The cost of the equipment and building will be $2.46 million. They will be depreciated straight-line to a zero book value over the life of the project and they will be sold for an estimated $300,000 upon project completion. The project will generate a revenue of 1,000,000 and a direct cost of 275,000 a year. The project will require a net working capital of $45,000 which will be recouped when the project ends. Should you accept the project if the tax rate is 35% and the WACC is 14% and why? Yes; The NPV is $466,940.57 No; The NPV is -$172,937.49. Yes; The NPV is $387,516.67 Yes; The NPV is $251,860.34 No; The NPV is -$87,820.48. No; The NPV is $251,860.43

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