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What is the net present value of this project

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Question - Evaluate the following project with an infinite life. The company will sell 500 units per year. Unit price and variable cost are $10 and $4, respectively. (Assume sales and costs occur at the end of the year). Fixed costs are $2,500 per year, but there is no initial investment or depreciation. The tax rate is 20% and the weighted average cost of capital (WACC) is 10%. What is the net present value of this project?

Reference no: EM132960616

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