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show procedure Wood Company is considering a new 3 ycar expansion project that requires an initial fixed asset investment of S1.2 milion. The fixed asset will be depreciated on a straight line basis over its 3 year life after which it will be worthless. The project is estimated to generate $1,120,000 in annual sales with annual cost of goods expenses of S480,000. The tax rate is 35% and the required return is 12%. Find the following for the project. 25. What is Wood Companys Operating Cash Flow? O a) S156,000 O b.) S400,000 с.) S556,000 d.) S240.000 26. What is Wood Companys Incremental Cash Flow (CFFA) in year 1? $156,000 O b.) S400,000 S556,000 a.) с.) d.) ($1,200,000) 27. What is Wood Companys Incremental Cash Flow (CFFA) today or in year 0? $156,000 O b.) S400,000 S556,000 a.) с.) d.) ($1,200,000) 28. What is the Net Present Value of Wood Companys project? a.) b.) c.) d.) S556.000 S135418 S644.000 S218135 O 29. What is the IRR on Wood Companys project? a.) b.) Ос.) d) S556.000 15.8% 12% 18.5%

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