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papahomer papahomer
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7 years ago
Year 0   Year 0   Year 1   Year 2
Revenue      $15,000   $15,000
Variable Cost      ($5,000)   ($5,000)
Depreciation      ($200)   ($200)
Fixed Cost      ($350)   ($350)
Operating Income      $9,450   $9,450
Taxes at 30%      ($2,835)   ($2,835)
NOPAT      $6,615   $6,615
Capital Investment   ($5,753)      
Free Cash Flow      $6,815   $6,815
NPV   $6,074.69      

Forecasts for project ST are shown above. Using a discount rate of 10%, the project has a positive NPV of $6,074.69. Estimate within $100 the level of sales revenue that will result in an NPV of $0.00. No other variables will change.
Textbook 
Financial Management: Principles and Applications

Financial Management: Principles and Applications


Edition: 13th
Authors:
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LutionalLutional
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