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Gaston Company is considering a capital budgeting project that would require a $2.600,.000 investment in equipment with a useful life of five years and no

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Gaston Company is considering a capital budgeting project that would require a $2.600,.000 investment in equipment with a useful life of five years and no salvage value. The company's tax rate is 30% and its after-tax cost of capital is 13%, it uses the straight-line depreciation method for financial reporting and tax purposes. The project would provide net operating income each year for five years as follows: Sales Variable expenses Contribution margin Pixed expensess 3.300,000 1.690,000 1,610,000 Advertining, salarien, and other Eixed $710.000 out-of-pocket coste Depreciation Total fixed expenses Net operating incone 520,000 230,000 380,000 Click here to view Exhibit 130-1 and Exhibit 130-2, to determine the appropriate discount factorts) using tables. Required: Compute the project's net present value

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