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Darlington Company is considering investing in an equipment, which will increase yearly cash revenues by $ 6 5 0 0 0 , and yearly cash

Darlington Company is considering investing in an equipment, which will increase yearly cash revenues by $65000, and yearly cash expenses to operate the equipment by $30,000. The asset will cost $200,000, and will last 8 years, with a salvage value of $40,000. Assuming a tax rate of 39%, determine the net present value of this asset, if the company requires a 10% return on investments.
Question 15 options:
($5,405)
$174,195.25
($25,804.75)
$5,405

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