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(Estimated time allowance: 7 minutes) This is a NPV break-even problem; however, the question asked is only about one part of the analysis. Do not

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(Estimated time allowance: 7 minutes) This is a NPV break-even problem; however, the question asked is only about one part of the analysis. Do not solve the entire problem, only the part asked below. You are bidding for a contract to sell computers to a small government agency. The contract will be for 380 computers a year for 5 years. To be able to produce these computers, you need to invest in S780 in equipment . The equipment has a taxable life of 10 years and will be depreciated using straight line. At the end of the 5 years, the equipment can be sold for $70 (market or scrap value). The variable cost of producing the computers is $11 per unit and you will incur in a fixed cost of $190 a year. The appropriate discounting rate for this type of projects is 11%. The corporate tax rate applicable to you in this case is 30%. Compute the after-tax salvage value (TV) of equipment at the end of the project? For your answer, round to the nearest dollar (do not enter decimals), use comma to separate thousands, do not use the dollar (S) sign, and if the cash flow is negative enter the (-) sign in front of the first digit. For example, if your answer is $12,068.89 then enter 12,069; if your answer is $4.000 then enter 4,000 VA

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