Question: You are considering a new product launch for three years after which the project ends. The equipment for the project will cost $ 9 0
You are considering a new product launch for three years after which the project ends. The equipment for the project will cost $ have a threeyear life and a $ salvage value. Depreciation is straight line to zero. Sales are projected at units per year with a per unit price of $ and variable cost per unit of $Fixed costs are estimated to be $ per year. The project requires maintaining net working capital t $ throughout the project. The discount rate is and the tax rate is This question has three parts: a b and ca Create the project's income statement and compute operating cash
B Compute the cash flow from assets
C Compute the NVP of the project Would you accept or reject
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