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Lou Construction is looking at a new system with an installed cost of $ 4 1 1 , 5 0 0 . This cost will
Lou Construction is looking at a new system with an installed cost of $ This cost will be depreciated straightline to zero over the project's sevenyear life, at the end of which the system is expected to be sold for $ cash. No bonus depreciation will be taken. The system will save the firm $ per year in pretax operating costs, and the system requires an initial investment in net working capital of $ All of the net working capital will be recovered at the end of the project. The tax rate is percent and the discount rate is percent. What is the net present value of this project?
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