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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 $ 1 2

Kopperud Electronics has an investment opportunity to produce a new HDTV. The required investment on January 1 of this year is $125 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 22 percent tax rate. The price of the product will be $431 per unit, in real terms, and will not change over the life of the project. Labor costs for Year 1 will be $15.80 per hour, in real terms, and will increase at 2 percent per year in real terms. Energy costs for Year 1 will be $4.18 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, in units 149,000169,000184,000157,000
Labor input, in hours 1,140,0001,240,0001,362,0001,282,000
Energy input, physical units 212,000227,000257,000242,000
The real discount rate for the project is 6 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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