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Kinky Copies may buy a high- volume copier. The machine costs $210,000 and will be depreciated straight-line over 5 years to a salvage value of

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Kinky Copies may buy a high- volume copier. The machine costs $210,000 and will be depreciated straight-line over 5 years to a salvage value of $38,000. Kinky anticipates that the machine actually can be sold in 5 years for $49,000 The machine will save $38,000 a year in labor costs but will require an increase in working capital, mainly paper supplies, of S19,000. The firm's marginal tax rate is 35%. and the discount rate is 7%. (Assume the net working capital will be recovered at the end of Year 5.) Calculate the NPV. (Negative amount should be indicated by a minus. Do not round intermediate calculations. Round your answer to 2 decimal places.) Should Kinky buy the machine? Yes No

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