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Exercise 9-13 Your answer is partially correct. Try again. Oak Fishing Company is contemplating the purchase of a new smoker. The smoker will cost $52,800
Exercise 9-13 Your answer is partially correct. Try again. Oak Fishing Company is contemplating the purchase of a new smoker. The smoker will cost $52,800 but will generate additional revenue of $34,900 per year for 6 years. Additional costs, other than depreciation, will equal $11,000 per year. The smoker has an expected life of 6 years, at which time it will have no residual value. Oak uses the straight-line method of depreciation for tax purposes. Click here to view factor tables Determine the net present value of the investment if the required rate of return is 13 percent and the tax rate is 40 percent. (Round present value factor calculations to 4 decimal places, e.g. 1.2151 and final answer to 0 decimal places, e.g. 125. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Net present value Should Oak make the investment in the smoker? Oak T should make the investment in the smoker
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