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Business, 24.10.2021 14:00 danielhall

Cost of equipment = 550000, shipping and installation will be 25000, 15000 in net working capital required at set up 8 year project life. Simplified straight line depreciation. Current operating expenses are 64000 per year. New operating expenses will be 400000 per year already paid consultants 25000 for analysis. Salvage value after year 8 is 40000 annual revenues 27000 per year cost of capital = 10% marginal tax rate = 40% should we accept this project?

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