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Kansas Corporation is reviewing an investment proposal that has an initial cost of $ 5 4 , 0 0 0 . An estimate of the

Kansas Corporation is reviewing an investment proposal that has an initial cost of $54,000. An estimate of the investment's end-ofyear book value, the yearly after-tax net cash inflows, and the yearly net income are presented in the schedule below. Yearly after-tax net cash inflows include savings from the depreciation tax shield. The investment's salvage value at the end of each year is equal to book value, and there will be no salvage value at the end of the investment's life.
\table[[,Initial Cost and,Yearly After-Tax Net,Yearly Net],[Year,Book Value,cash Inflows,Income],[1,$35,500,$20,500,$3,000
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