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Net Present ValueCarsen Sorensen, controller of Thayn Company, just received the following data associated with production of a new product: Expected annual revenues: $ 7

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Net Present ValueCarsen Sorensen, controller of Thayn Company, just received the following data associated with production of a new product: Expected annual revenues: $750,000 Projected product life cycle: five years Equipment: $800,000 with a salvage value of $100,000 after five years Expected increase in working capital: $100,000(recoverable at the end of five years) Annual cash operating expenses: estimated at $450,000 Required rate of return: 8 percentThe present value tables provided in Exhibit 198.1 and Exhibit 19B.2 must be used to solve the following problems.
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