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Epsilon Electronics is considering the purchase of testing equipment that will cost $633,000 to replace old equipment. Assume the new equipment will generate before-tax savings

Epsilon Electronics is considering the purchase of testing equipment that will cost $633,000 to replace old equipment. Assume the new equipment will generate before-tax savings of $396,000 per year over the four years. The new equipment will result in additonal depreciation of $64,000 per year. If the cost of capital is 12% and the tax rate is 30%, what is the NPV of the project.

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