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As a supervisor in Wealth Health Services, you oversee the investment activity of a number of clients as well as train interns and new staff

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As a supervisor in Wealth Health Services, you oversee the investment activity of a number of clients as well as train interns and new staff in the company. Paul, a college junior, is in just the second week of his 12-week internship. He is helping a client evaluate an asset replacement decision while following a similar example from a different client. He presents the asset replacement information and his analysis to you, as follows. Question 9 of 9 0/2 Paul 's Analysis Proceeds from sale of existing asset $5,000 Cost of new replacement asset $(154,860) Present value of new asset's operating cash flows $25,400 ordinary annuity, n=10,i=10% \begin{tabular}{lr} $25,4006.14457 & $156,072.08 \\ NPV of replacement & $6,212.08 \\ \hline \hline \end{tabular} Based on his analysis, Paul suggests moving forward with this asset replacement. Click here to view the factor table (a2) Your answer is incorrect. Determine the correct NPV of the investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 2 decimal places e.g. 5,125.36. Enter negative amounts using either a negative sign preceding the number, e.g. -5,125.36 or parentheses, e.g. (5,125.36).)

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