Question: Question 12 6.25 pts You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty sice. You estimate the sales price
Question 12 6.25 pts You are evaluating a project for The Farstroke golf club, guaranteed to correct that nasty sice. You estimate the sales price of The Forstroke to be $430 per unit and sales volume to be 1.000 units in year 1: 1.500 units in year 2 and 1325 units in year 3. The project has a 3-year lite. Variable costs amount to $240 per unit and found costs are $100.000 per year. The project requires an initial investment of $174,000 in assets, which can be depreciated using bonus depreciation. The actual market value of these assets at the end of year 3 is expected to be $38,000, NWC requirements at the beginning of each year will be approximately 20 percent of the projected sales during the coming year. The tax rate is 21 percent and the required return on the project is 10 percent. What change in NWC occurs at the end of year 17 O a decrease of $86.000 an increase of $43,000 O a decrease of $43.000 an increase of $86.000 Previous Net Hoe app.howtock.com is sharing your screen Stop sharing Calculator Esam Golden owser Guard c U 018? 5 6 3 2 u T R E w G H D F S B
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