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Calculate NPV and IRR Initial investment costs $275,000 Net annual savings $55,000, increasing 2% per year, starting in year 2 Estimated useful life of centre

Calculate NPV and IRR

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

The Slavage Value is 0

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