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abeis Inc. has provided the following data concerning a proposed investment project: Initial investment ..... $651,000 Annual cash receipts $423,000 Life of the project..... 8
abeis Inc. has provided the following data concerning a proposed investment project: Initial investment ..... $651,000 Annual cash receipts $423,000 Life of the project..... 8 years Annual cash expenses....... $169,000 Salvage value " The company's tax rate is 30%. For tax purposes, the entire initial investment without any reduction for salvage vahe will be depreciated over 7 years. The company uses a discount rate of 13%. Required: Compute the net present value of the project
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