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Kopperud Electronics has an investment opportunity to produce a new HDTV . The required investment on January 1 of this year is $ 2

Kopperud Electronics has an investment opportunity to produce a new HDTV . The required investment on January 1 of this year is "$210 million". The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm has a 24 percent tax rate. The price of the product will be $567 per unit , in real terms, and will not change over the life of the project. Labor costs for Year 1 will be $16.65 per hour , in real terms , and will increase at 2 percent per year in real terms. Energy costs for Year 1 will be $4.86 per physical unit, in real terms, and will increase at 3 percent per year in real terms. The inflation rate is 5 percent per year . Revenues are received and costs are paid at year -end. Refer to the following table for the production schedule: Year 1 Year 2 Year 3 Year 4 Physical production 183,000203,000218,000174,000 in units Labor input, in hours1,310,0001,580,0001,379,0001,299,000 Energy input physical units 229,000244,000274,000259,000 The real discount rate for the project is 5 percent Calculate the NPV of this project. (Do not round intermediate calculations and enter your answer in dollars, not millions of dollars, rounded to 2 decimal places , e.g.1,234,567.89.)

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