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Eggz, Incorporated, is considering the purchase of new equipment that will allow the company to collect loose hen feathers for sale. The equipment will cost
Eggz, Incorporated, is considering the purchase of new equipment that will allow the
company to collect loose hen feathers for sale. The equipment will cost $ and
will be eligible for percent bonus depreciation. The equipment can be sold for
$ at the end of the project in five years. Sales would be $ per year, with
annual fixed costs of $ and variable costs equal to percent of sales. The
project would require an investment of $ in NWC that would be returned at the
end of the project. The tax rate is percent and the required return is
percent. Calculate the NPV of this project. Do not round intermediate calculations and
round your answer to decimal places, eg
NPV
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