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A new electronic process monitor costs $690,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth

A new electronic process monitor costs $690,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth $101,000 in five years. The new monitor would save $460,000 per year before taxes and operating costs. If we require a 12.5% return, what is the NPV of the purchase?Assume a tax rate of 25%

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