The Juniper Network Company is considering a new 5-year expansion project that requires an initial freed investment of $2.5 million. The fixed asset will be depreciated straight line to zero over its five year tax life, after which time it will be worthless. The applicable tax rate is 22% Estimated annual sales for the project are $2.2 million with annual costs of $1.15 mm. The project will also require an initial investment in NWC of $140,000. The tax shield approach is defined as: [Select] Using the tax shield approach, OCF for years 1 through 5 are estimated at $[Select] per year

E14.2

E10.15

Problem 20-96 from pic.

12-10

Calculate: (1+)" m m where m=132, and r=0.102

That is not a possible solution. The possible anwsers are --> a. 122329.9877 b. 127159.8450 c. 122132.1253 d. 126907.4914   Please explain

b. 15800 is not correct - what is the correct answer?