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Donald has made up his mind-he wants a pool in the family's backyard! He figures his kids and spouse will be thrilled. However, to cover
Donald has made up his mind-he wants a pool in the family's backyard! He figures his kids and spouse will be thrilled. However, to cover the cost of the pool, they'll have to pack up and live away from home for a few weeks during the summer to rent their home to vacationers. He crunched the numbers based on the following estimates. 1. Cost of pool/installation $52,302 2. Life of the pool (no salvage value) 20 years 3. Annual net cash inflows from renting (net of cash expenses for renting and pool maintenance) $6,900 4. Tax rate 24% 5. Average rate of return 8% Determine the NPV of this investment. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places e.g. 125.25. Enter negative amounts using either a negative sign preceding the number e.g. -45.25 or parentheses e.g. (45.25).) NPV \$
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