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A company is deciding whether or not to invest in an asset that would reduce costs. If the company proceeds with the investment, it would
A company is deciding whether or not to invest in an asset that would reduce costs. If the company proceeds with the investment, it would buy the asset for $625,000. Assume the present value of salvage value is $32,000, PVCCATS is $118,000, and present value of after-tax savings is $508,000. What is this investment's NPV?
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