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Assume we invest $120,000 in a new project that we anticipate will expand sales by 18% over our current level of sales of $550,000. The increase in fixed costs are expected to be about 35% of sales. We can depreciate the initial outlay of $120,000 over a five-year period. The company's marginal tax rate is 22%. What is the expected change in net income?

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Financial Management, Finance

Category:- Financial Management
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