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What is the minimum value of the new sales generated

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Question - A project is expected to generate new sales with total annual costs of $1.1 million and has initial installed cost of $5 million. The cash flows are expected to continue in perpetuity and the equipment will NOT be depreciated for tax purposes. The tax rate is 40% and the required return is 10%. What is the minimum value of the new sales generated that would make this a good project?

Reference no: EM133007006

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