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Little Guy Limited is evaluating the purchase of new equipment that will cost $ 5 0 , 0 0 0 . The purchase is expected

Little Guy Limited is evaluating the purchase of new equipment that will cost $50,000. The purchase is expected to reduce net operating costs by $30,000 in year 1, $25,000 in year 2, and $5,000 in year 3. The firms cost of capital is 14%. What is the net present value of this investment?
Question 13 Select one:
a.
-$1,073.
b.
-$6,128.
c.
$3,375.
d.
$4,386.
e.
$5,000.

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