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24. A new electronic process monitor costs $990,000. This cost could be depreciated at 30% per year (Class 10). The monitor would actually be worthless
24. A new electronic process monitor costs $990,000. This cost could be depreciated at 30% per year (Class 10). The monitor would actually be worthless in five years. The new monitor could save $460,000 per year before taxes and operating cots. If a 15% return is required, what is the NPV of this purchase? Assume a 40% tax rate. a) $234,987.00 b) $181,977.42 c) $232,997.09 d) $423,887.90
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