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Eggz, Inc s consldering the purchase of new equlpment that will allow the company to collect loose hen feathers for sale. The equlpment will cost
Eggz, Inc s consldering the purchase of new equlpment that will allow the company to collect loose hen feathers for sale. The equlpment will cost $480,000 and will be ellgible for 100 percent bonus depreclation. The equipment can be sold for $78,000 at the end of the project In 5 years. Sales would be $362,000 per year, with annual fixed costs of $58,000 and varlable costs equal to 39 percent of sales. The project would require an Investment of $47,000 In NWC that would be returned at the end of the project. The tax rate Is 21 percent and the required return Is 12 percent. Calculate the NPV of this project. (Do not round Intermedlete calculatlons and round your answer to 2 decimal places, e.g., 32.16.) NPV
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