Problem 12.08 – Spectrometer for R&D Department

Fundamentals of Financial Management, Concise

Brigham and Houston

11th Edition

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Difficulty – Medium

Given the purchase price, equipment selling price, required increase in NWC, before-tax labor costs, and tax rate... determine the initial investment outlay for the spectrometer for part a., the annual cash flows for years 1,2, and 3, and finally the NPV of the spectrometer.

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