a 4 year, cost cutting project will increase after tax operating cash flows by 58500...
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a 4 year, cost cutting project will increase after tax operating cash flows by 58500 a year. The machine costs 86000 and initially requires a 10,000 investment in inventory which is recoverable at the end of the project. Assume the salvage value and book values of the machine are both zero after 3 years. if the tax rate is 40 %, what is the NPV of the project if the weighted average cost of capital for the firm is 13%?
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