frl367 hw1

frl367 hw1 - from selling an old machine (year 0), Salvage...

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Sin Yi, Wong (Christi) FRL 367 HW2 1. What will be the Net Capital Spending in year 0 associated with switching to the 3D movie theater project? Calculate and explain. Long-term investment related cash flows: Initial investment (year 0 only), Salvage value
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Unformatted text preview: from selling an old machine (year 0), Salvage value from selling the new machine (final year), Opportunity cost (year 0 and possibly final year). = Initial investment (30million) + Salvage value from selling an old machine (10million X34%) +...
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This note was uploaded on 01/24/2012 for the course ECON 101 taught by Professor Newman during the Spring '11 term at Mt. SAC.

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