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Dunder-Miflin is considering opening a new branch in Columbia with an initial fixed asset cost of $2.46 milion which will be depreciated straight-line to a

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Dunder-Miflin is considering opening a new branch in Columbia with an initial fixed asset cost of $2.46 milion which will be depreciated straight-line to a zero book value over the 10-year life of the project At the end of the project the equipment will be sold for an estimated $300,000. The project will not directly produce any sales but will reduce operating costs by S725,000 a year. The tax rate is 35 percent. The project will require $45,000 of inventory which wil be recouped when the project ends. What is the NPV of this project if the firm requires a

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