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VetVo Co. is considering making a new product. The new product is expected add $4.54 millions to the firm's sales each year and the expected annual costs are $2.42 millions. The shareholders of VetVo requires 16.54% return and the corporate tax rate is 34 percent. This project has three years life and requires $4.54 millions investment in fixed assets. The fixed assets are classified as 3-year MACRS assets. The expected salvage is $50,000. There is no change in net working capital.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92425833

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