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Business, 07.11.2019 20:31 taliajohnsom9901

Your company may introduce a new line of tennis shoes. you have been given the following projections: sales = 35,000 units @ $40 per unit; variable costs = $25 per unit; fixed costs = $125,000 per year; initial investment = $1,000,000; interest expense = $50,000 per year; project life = 10 years. what is the net income for this project if the corporate tax rate is 34%? you may assume straight-line depreciation and a discount rate of 12%.

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