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Calculate NPV and IRR based on the following information Initial investment costs $275,000 Net annual savings $55,000, increasing 2% per year, starting in year 2

Calculate NPV and IRR based on the following information

Initial investment costs $275,000

Net annual savings $55,000, increasing 2% per year, starting in year 2

Estimated useful life of centre 10 years

CCA rate 30 percent

Corporate tax rate 15 percent

Weighted average cost of capital 8 percent

Salvage value is equal to zero

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