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Crenshaw, Incorporated, is considering the purchase of a $ 4 1 2 , 0 0 0 computer with an economic life of five years. The
Crenshaw, Incorporated, is considering the purchase of a $ computer with an economic life of five years. The computer will be fully depreciated over five years using the straightline method. The market value of the computer will be $ in five years. The computer will replace five office employees whose combined annual salaries are $ The machine will also immediately lower the firms required net working capital by $ This amount of net working capital will need to be replaced once the machine is sold. The corporate tax rate is percent. The appropriate discount rate is percent. Calculate the NPV of this project.
Note: Do not round intermediate calculations and round your answer to decimal places, eg
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