Question: Use the information below to answer Questions 1 9 and 2 0 . Needle and Thread Inc. is considering expanding one of its production facilities
Use the information below to answer Questions and
Needle and Thread Inc. is considering expanding one of its production facilities to build a new line of sewing kits. The project would require a $ capital investment and $ shipping fee, and will be equally depreciated straightline over its year life. They believe they can salvage $ for the equipment at the end of the project.
Incremental sales are expected to be $ annually for the year period with cash expenses of of sales. The company would also have to commit initial working capital to the project of $ The company is subject to a marginal tax rate of and investors require a return on projects with a similar risk.
What is the initial cash outlay associated with this project FCF in Year
A$
B$
C$
D$
E $
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