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A business is exploring a possible capital project. The equipment and software will cost $20,000. TThe purchase will save $6,600 a year for the first
A business is exploring a possible capital project. The equipment and software will cost $20,000. TThe purchase will save $6,600 a year for the first 3 years and $6,500 a year for years 4 to 6. If the companys weighted average cost of capital (WACC) is 12%, what is the NPV for the project. Select one: a. $6,108 b. $6,441 c. $6,233 d. $6,964 e. $6,899
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