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1. 25 Points . Dunmore Corporation . Suppose 1 ) the MIX 430 can be sold one year from now for $700, 000 and 5

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1. 25 Points . Dunmore Corporation . Suppose 1 ) the MIX 430 can be sold one year from now for $700, 000 and 5 years from now for $600, 000 ; and 2 ) Dunmore will purchase the MID *740 if it's NPV is $100, 000 . All of the other original assumptions are the same , e.g. NPV of the MD X 740 = - $262.5 thousand , tax rate = 32%; discount rate = 11% . Given these assumptions , answer the following : a . What is the NPV of the MD * 740 ? b. What are the MID * 740's required annual before tax cost savings for Dunmore to purchase the MID * 7 40

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