Equipment Cost: $50 (million)
Directions to go by for the assignment:
The estimated life of the equipment will be 12 years. The salvage value of the equipment will be 5% of the equipment's cost.
The annual EBIT for this new project will be 18% of the project's cost
The company will use the straight-line method to depreciate this equipment. Use 35% as the tax rate.
The hurdle rate for this assignment will be the WACC which is 13.21%
Requirements for the Assignment (things I need answered or help with):
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