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Homer wants to sell you his snow removal equipment for $871,000. You estimate the equipment has a fourteen-year life, but no salvage value. Your accountant

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Homer wants to sell you his snow removal equipment for $871,000. You estimate the equipment has a fourteen-year life, but no salvage value. Your accountant suggests you depreciate the assets to zero on a straight-line basis over the fourteen years. Sales contracts for snow removal are projected at 144,000 per year. Price per contract is $42, while the variable cost per contract is $26. You estimate fixed costs are $875,355 per year. The tax rate is 37 percent, and you require a 13 percent return on this project. The projections given for price, quantity, variable costs, and fixed costs are all accurate to within +/- 14 percent Calculate the best-case NPV. (Do not round your intermediate calculations.) (Click to select) $12,919,164 $7,200,815 $11,945,980 $12,273,206 $13,565,122

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