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Business, 08.11.2019 05:31 shongmadi77

Temple corp. is considering a new project whose data are shown below. the equipment that would be used has a 3-year tax life, would be depreciated by the straight-line method over its 3-year life, and would have a zero salvage value. no change in net operating working capital would be required. revenues and other operating costs are expected to be constant over the project's 3-year life. what is the project's npv? risk-adjusted wacc 10.0%net investment cost (depreciable basis) $65,000straight-line depreciation rate 33.%sales revenues, each year $65,500annual operating costs (excl. depreciation) $25,000tax rate 35.0%a. $15,740b. $16,569c. $17,441d. $18,359e. $19,325

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