Question: very important that you show your work step by step 4. The Free Manufacturing Company is considering a new investment. Financial projections are below. The
very important that you show your work step by step
4. The Free Manufacturing Company is considering a new investment. Financial projections are below. The company has a 34% tax rate and a 12% discount rate. Assume salvage value is zero. YO Y1 Y2 Y3 Investment $33,000 Sales $14,200 $15,900 $15,700 Costs 2 ,100 2,100 2,100 Depreciation 11,000 11,000 11,000 NWC Spending 450 1 75 2 50 What is the NPV of this project? What if sales are 10% higher than expected
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