Question: the answer i got from chegg is wrong. please solve it in the right way Winthrop Company has an opportunity to manufacture and sell a
Winthrop Company has an opportunity to manufacture and sell a new product for a five-year period. To pursue this opportunity, the company would need to purchase a piece of equipment for $130.000. The equipment would have a useful life of five years and a $10,000 salvage value. The CCA rate for the equipment is 30%. After careful study. Winthrop estimated the following annual costs and revenues for the new product: The company's tax rate is 30% and its after-tax cost of capital is 10%. Required: 1. Compute the net present value of the project. (Hint. Use Microsoft Excel to calculate the discount factor(s).) (Do not round intermediote calculations and PV factor. Round the final answers to the nearest whole dollor. Negative value should be indicated with minus sign.) 2. Would you recommend that the project be undertaken
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