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Given the following capital budgeting assumptions: Yearly old operating cost Yearly old depreciation cost Yearly old maintenance cost Yearly old tax payment 21,000 2,000 12,000
Given the following capital budgeting assumptions: Yearly old operating cost Yearly old depreciation cost Yearly old maintenance cost Yearly old tax payment 21,000 2,000 12,000 7,000 15,000 3,500 Yearly new operating cost Yearly new depreciation cost Yearly new maintenance cost Yearly new tax payment 14,000 9,000 25% 15% Tax Rate Discount Rate Project Investment Project Life 45,000 6 years What is the Net Present Value (NPV) of the yearly (annual) capital budgeting cost
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