Temple Corp. is considering a new project whose data are shown below. The equipment that...
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Temple Corp. is considering a new project whose data are shown below. The equipment that would be used for 2-year, would be depreciated by the straight-line method over its 2-year life, and would have a zero salvage value. Revenues and other operating costs are expected to be constant over the projects life. What is the projects NPV?
WACC 10% Equipment cost $50,000 Increase in NOWC $10,000 Sales, each year $60,000 Operating costs (excluding depreciation) $30,000 Tax rate 40%
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