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I don't understand, could you clarify? Assume everytgLsgiven in n=0, CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools

I don't understand, could you clarify?

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Assume everytgLsgiven in n=0, CONSTANT dollars unless otherwise stated: Hartsfield Company is considering purchasing a set of machine tools at a cost of $30,000. The purchase is expected to generate revenues of $23,000. The purchase of the tools will also lead to higher operating costs of $6,000 per year in each of the next three years. Additional profits will be taxed at a rate of 30%. The asset falls into CCA Class 45 [rate = 40%} for tax purposes and the 50% rule applies. The project has a three-year life. The constant-dollar market {re-sale} value of the machine tools is expected to fall by 30% annually. The company will require a working capital of $3,000 to be maintained in purchasing power over the lifetime of the project, and can be recovered at the time of the project's completion. The general inflation rate is 3% per year {and affects everything that it normally affects}. Assume a MARR' =5%. [Remember to round upldown to whole dollar figures for EVERY entry in the income statement and cash flow statement. Solutions are also rounded to the nearest dollar. Note: .5 rounds up] Find the NPW of the project

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