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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine's base price is $260.000, and installation costs would amount to

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Blue Sky Corporation is evaluating the proposed acquisition of a new production machine. The machine's base price is $260.000, and installation costs would amount to $28.000. An additional $14.000 in networking capital would be required at installation. The machine has a darslife of 2 years. The machine would save the form $250,000 per year in conting costs. The firm 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 tem as a required rate et retum on investment projects of 12% and a marginal tax rate of 23% What the NPV of the project $1,22 5130350 1866 5123.30

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