Alberta Pasta is considering producing a new type of pasta. The required equipment has a...
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Alberta Pasta is considering producing a new type of pasta. The required equipment has a constant capital cost allowance over its 3-year life with a zero salvage value. No new working capital would be required. Revenues and cash operating costs are expected to be constant over the project's 3-year life. However, this project would compete with other Alberta Pasta products and would reduce the company's pre-tax annual cash flows. What is the project's NPV? a. 93,879 b. 37,750 c. 28,879 d. 29,325
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