Question: Multimedia Entertainment is considering a project with an initial fixed asset cost of $ 5 7 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 Glve your answer in dollars and cents.
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