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Moonrise Inc is considering expanding its operations. The expansion will require new equipment costing $649,000 that would be depreciated on a straight-line basis to a

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Moonrise Inc is considering expanding its operations. The expansion will require new equipment costing $649,000 that would be depreciated on a straight-line basis to a salvage value of $187,000 over the four-year life of the project. The project requires $38,000 initially for net working capital, all of which will be recouped at the end of the project. The projected operating cash flow is $170,136 a year for four years. What is the net present value of this project if the relevant discount rate is 14 percent and the tax rate is 35 percent? O A. $ - 80,554 OB. $-42,554 OC. $ - 168,774 OD. $-96,806 E. $ - 58,055

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