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Always Building Co. is considering branching out into a new product line. They forecast annual cash flows of $420,000 from this new product line. This

Always Building Co. is considering branching out into a new product line. They forecast annual cash flows of $420,000 from this new product line. This will require an initial investment of $1,480,000. Additionally, this new product will reduce existing sales by an estimated $200,000 per year for 8 years. The firms cost of capital is 9%. Calculate the NPV of this project.

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