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Brandon buys a piece of equipment for $ 1 5 , 0 0 0 . He pays $ 5 , 0 0 0 for upgrades

Brandon buys a piece of equipment for $15,000. He pays $5,000 for upgrades in year 1 and the equipment generates $2,000 in cash flow for year 1. In year 2 the equipment generates $8,000, in year 3 it generates $4,000, but Brandon sells it for $6,000 but also pays a $500 commission. Assume a required rate of return of 8%. What is the NPV?

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