1. Business
  2. Finance
  3. blossom company management is considering a project that will require...

Question: blossom company management is considering a project that will require...

Question details
Blossom Company management is considering a project that will require an initial investment of $45,000 and will last for 10 years. No other capital expenditures or increases in working capital are anticipated during the life of the project. What is the annual EBIT that will make the project economically viable if the cost of capital for the project is 8 percent and the firm will depreciate the investment using straight-line depreciation and a salvage value of $0? Assume that the marginal tax rate is 30 percent. (Do not round intermediate calculations. Round final answer to 2 decimal places, e.g. 52.75.)


Please show how to use the 8% in sum of factors calc
Solution by an expert tutor
Blurred Solution
This question has been solved
Subscribe to see this solution