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Metro Clinic, a nonprofit organization, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys
Metro Clinic, a nonprofit organization, estimates that it can save $28,000 a year in cash operating costs for the next 10 years if it buys a special-purpose eye-testing machine at a cost of $110,000. No terminal disposal value is expected. Metro Clinic's required rate of return is 12%. Assume all cash flows occur at year-end except for initial investment amounts. Metro Clinic uses straight-line depreciation. Read the requirements. Requirement 1. Calculate the following for the special-purpose eye-testing machine: a. Net present value (NPV) (Use factors to three decimal places, X.XXX, and use a minus sign or parentheses for a negative net present value. Enter the net present value of the investment rounded to the nearest whole dollar.) The net present value is
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