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Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $ 8 , 4 0 0
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $ and sell its
old washer for $ The new washer will last for years and save $ a year in expenses. The opportunity cost of capital is
and the firm's tax rate is
a If the firm uses straightline depreciation over a year life, what are the cash flows of the project in years to The new
washer will have zero salvage value after years, and the old washer is fully depreciated.
Note: Negative amounts should be indicated by a minus sign.
b What is project NPV
Note: Do not round intermediate calculations. Round your answer to decimal places.
c What is NPV if the firm investment is entitled to immediate bonus depreciation?
Note: Do not round intermediate calculations. Round your answer to decimal places.
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