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Felix Corporation is considering a new 4-year expansion project that requires an initial fixed asset investment of RM330,000. The fixed asset will be depreciated straightline

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Felix Corporation is considering a new 4-year expansion project that requires an initial fixed asset investment of RM330,000. The fixed asset will be depreciated straightline to zero over its 4-year tax life. All net working capital will be recovered at the end of the project. The net working capital will decrease RM12,000. The project is estimated to save the firm RM64,000 in pretax operating cost for 4-year. The salvage value at the end of the project is RM12,000. The tax rate is 30% and the required return for the project is 12%. The Calculate the net present value for this project and should the company accept or reject this project

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