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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine base price $260,000, and installation costs would amount to $28,000.

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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine base price $260,000, and installation costs would amount to $28,000. An additional $14.000 in net working capital would be required at installation. The machine has a clans life of years. The machine would save the firm $250,000 per year in operating costs. There is planning to keep the machine in place for 2 years. At the end of the second year, the firm plans to sell the machine for $120,000. The firm has a required rate of return on investment projects of 12% and a mantinal tax rate of 21% What the NPV of the project 518.627 $130.250 O $150 ADD 5169827 5122,400

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