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A new electronic process monitor costs $ 1 , 5 0 0 , 0 0 0 . This cost could be depreciated at 2 5

A new electronic process monitor costs $1,500,000. This cost could be depreciated at 25% per year. The monitor would actually be worth $150,000 in five years. The new monitor would save $700,000 per year before taxes and operating costs. Suppose the new monitor requires us to increase net working capital by $47,200 when we buy it. If we require a 23% return, what is the NPV of the purchase? Assume a tax rate of 35%.
Group of answer choices
$17,670.47
($218,339.61)
($201,574.12)
($224,419.80)
34,435.96
$87,716.15

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