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Coastal Brewing Co. is considering investing in a new brewing system. The current system, if sold now, would bring in $75,000. The new system costs

Coastal Brewing Co. is considering investing in a new brewing system. The current system, if sold now, would bring in $75,000. The new system costs $230,000 and requires an additional $65,000 for installation and initial operation. The investment is expected to bring in additional cash inflows of $80,000 in the first year, and $160,000 annually for the next two years. With a three-year lifespan and no residual value for the new system, the required rate of return is 12%. Determine the NPV and recommend whether Coastal Brewing Co. should invest in the new system.

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