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NPV of Capital Investment. A San Jose company is considering purchasing new equipment for $ 5 6 5 , 0 0 0 . They project

NPV of Capital Investment.
A San Jose company is considering purchasing new equipment for $565,000. They project the equipment will result in net cash flows over the next 6 years of $125,000 for 4 years, then $90,000 a year in the next 2 years. The company estimates that it can sell the equipment at the end of the sixth year for $120,000.
What is the NPV (including the salvage value) of this potential capital investment if the company's WACC is 8.8%?
a. $26,744
b. $32.077
c. $27,386
d. $30,194
e. $33,022
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