Solution-Create the cash flow table showing

Create the cash flow table showing

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Your company is preparing to launch a new product over the next 10 years.The equipment to make this new product will have an initial cost of $125000 to the company. At the end of the project, you believe you can get $21000 for the equipment as salvage.Supplies will cost $1800 the first year and go up by $850 each year.Maintenance costs start at $1250 the first year and will increase by 2.5% each yearThe company expects to make $7500 the first year and this will increase by 1.2% each year.Create the Cash flow table showing these costs and profits and the net cash flow.If the interest rate is 3.9%, what will be the NPV of the project?

Reference no: EM132556929

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Create the cash flow table showing

Reference no: EM132556929

Reference no: EM132556929

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