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1. We plan to produce widgets for 3 years. The widget-producing machine cost $102 and is depreciated linearly. It will be scraped with a salvage value of $20. We plan to sell 10 units in year 1, 20 in year 2 and 30 in year 3. In the first two years the price is expected to be $10 , but in year 3 , due to fact that low-cost competition will jump in , we will have to decrease it to $7. Finally competitors will drive us out of business. That is why we plan for only three years. Our units cost of production throughout that period is $5 . Working capital needs are forecasted to be equal to 20% of next year’s sales each year. Opportunity cost of capital is 10% and relevant tax rate is 35%. What is the NPV of that project?