Question: Multimedia Entertainment is considering a project with an initial fixed asset cost of $ 6 6 0 , 0 0 0 that will be depreciated
Multimedia Entertainment is considering a project with an initial fixed asset cost of $ that will be depreciated straightline to a zero book value over the year life of the project. At the end of the project, the equipment will be sold for an estimated $ The project will generate sales of $ per year. Variable costs are of sales. Fixed costs are $ per year. The tax rate is percent and the required return is percent. The project will require $ in net working capital, which will be recouped in the final year of the project. What Is the project's NPV Give your answer in dollars and cents.
To get full credit for this problem, fill in a Pro Forma Income Statement and a Cash Flow from Assets CFFA table. You will submit both to me Be sure to show all your calculations.
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