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19 You are planning to invest $200 in new equipment. The equipment will generate cost savings of $150 in year 1 and $200 in year
19 You are planning to invest $200 in new equipment. The equipment will generate cost savings of $150 in year 1 and $200 in year 2 . The salvage value at the end of year 2 is zero. The discount rate (cost of capital) is 25% a year. Compute the net present value (NPV) of this investment. A. $150 B. $390 C. $48 D. $528 E. $188
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