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2. Eggs, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will

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2. Eggs, Inc., is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost $425,000 and will be eligible for bonus depreciation-2. The equipment can be sold for $45,000 at the end of the project in 5 years. Sales would be $275,000 per year, with O\&M costs equal to 35% of sales. The tax rate is 22% and the after-tax MARR is 9%. What is the project's NPW? 3. An engineer's salary was $55,000 in 2002. The same engineer's salary in 2011 is $85,000. If the company's salary policy dictates that a yearly raise in salaries reflect the cost-of-living increase due to inflation, what is the average inflation rate for the period 2002-2011

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