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A new electronic process monitor costs $980,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth

A new electronic process monitor costs $980,000. This cost could be depreciated at 30 percent per year (Class 10). The monitor would actually be worth $95,000 in five years. The new monitor would save $ 440,000per year before taxes and operating costs. The new monitor requires to increase net working capital by $47,200 when we buy it. Assume a tax rate of 40 percent.If we require a 15 percent return, what is the NPV of the purchase?

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