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Initial investment costs 275,000 Net annual savings 55,000--Increasing 2% per year, starting in year 2 Estimated useful life of centre 10 CAA rate 30% Corporate

Initial investment costs 275,000

Net annual savings 55,000--Increasing 2% per year, starting in year 2

Estimated useful life of centre 10

CAA rate 30%

Corporate tax rate 15%

Weighted average cost of capital 8%

No salvage value at end.

What is the NPV?

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