Question: please do it in 10 minutes will be upvote Question 11 A proposed capital expenditure project involves purchasing and installing new equipment. The equipment will

 please do it in 10 minutes will be upvote Question 11

please do it in 10 minutes will be upvote

Question 11 A proposed capital expenditure project involves purchasing and installing new equipment. The equipment will cost $20,000, with an additional $1;500 charge for delivery. Installation is estimated to be $4,000. The equipment has an expected life of 9 years and estimated salvage value of $6,000. The project requires an additional working capital investment of $6,000. The project revenues are forecast at $35,000 per year and cash expenses are estimated at $15,000 per year. The firm has a 40% marginal tax rate and an 8% weighted average cost of capital. Annual depreciation is expected to increase by $2,833.33 per year, assuming simplified straight line depreciation. Calculate the one-time, end of project cash flows from this proposed project. $20,000$12,000$9,600$3,600 None of the listed items is correct

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