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A midwestern highway patrol just purchased a new set of radar guns for $44,800. Its operating costs are $4,200, exclusive of depreciation. The radar guns

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A midwestern highway patrol just purchased a new set of radar guns for $44,800. Its operating costs are $4,200, exclusive of depreciation. The radar guns will have a five-year useful life with a residual value of $7,500. A week after the purchase, a different company offered another type of radar gun that would reduce the operating costs to just $1,300, exclusive of depreciation. These new radar guns have a total cost of $55,100, a useful life of five years, and a residual value of $10,700. The "old" radar guns can be sold outright for $39,000. Using a discount rate of 12%, determine the net present value of the different company's offer

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