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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 $430,000 and will be eligible for 100 percent bonus depreciation. The equipment can be sold for $48,000 at the end of the project in 5 years. Sales would be $279,000 per year, with annual fixed costs of $48,000 and variable costs equal to 35 percent of sales. The project would require an investment of $27,000 in NWC that would be returned at the end of the project. The tax rate is 21 percent and the required return is 8 percent. Calculate the NPV of this project.

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