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Minimal required amount of annual sales revenue

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You Plan to bid on a project with a useful life of 5 years that will require an initial investment of $68,000 in fixed assets. These assets will be depreciated straight-line to zero over the projects life. The relevent discount rate is 12.5 percent, the corporate tax rate is 21 percent, there is no additional investment in net working capital, and there is no salvage value. What is the minimal required amount of annual sales revenue given annual cash costs of $47,000?

Reference no: EM133305589

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