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Clearwiven Systems ifd. is considering the purchase of a new machine for 5335,000 . The firm's old machine has a book value of Sto, ooo

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Clearwiven Systems ifd. is considering the purchase of a new machine for 5335,000 . The firm's old machine has a book value of Sto, ooo tuut can be sold tortay fir \$ro, 0oo. The oew machine wilt be subject to a cCA rate of 25 percent. it is expected to sarme an annual cark thow of $62000 per year for 7 years through reduced fuel and maintenance expenses. The company will need to invest $12,000 in spare parts inventory fworking capital) when they purchase the machine. At the end of the 7 years the company believes it can sell the machine for 520,000 . Clearview Systems itd, has a 12 percent cost of capital and a 30 percent tax rate. Required: Gather the relevant information into the key facts of this case and compute the Net Present Value for this capital budgeting deciston Fnter all cash flows net of tax, where applicable. lound all cash flow numbers to zero decimal places. ter cash outflows as negative rumbers

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