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Laurman, inc is considering the following project: required investment equipment: $ 2 , 2 0 5 , 0 0 0 Project life: 7 Salvage Value:

Laurman, inc is considering the following project: required investment equipment: $2,205,000 Project life: 7 Salvage Value: 225,000 The project would provide net operating income each year as follows: Sales: $2,750,000 Variable expenses: 1,600,000 Contribution Margin: 1,150,000 Fixed Expenses: Salaries, rent and other fixed out of pocket costs: $520,000 Depreciation: 350,000 Total Fixed Expenses: 870,000 Net operating income: 280,000 Company discount rate: 18%1. Compute the annual net cash inflow from the project 2. Complete the table to compute the net present value of the investment: (see photo) Complete the table to compute the net present value of the investment.
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