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NPVGO The potential owner/managers of the yet to be formed new In-Line Blade Company are evaluating the prospects for the business. The new equipment is
NPVGO The potential owner/managers of the yet to be formed new In-Line Blade Company are evaluating the prospects for the business. The new equipment is expected to be $5.5 million in year 0 and have after tax cash flows of $400,000 for the first two years, $750,000 in the next two years, and $1, 200,000 per year thereafter indefinitely. The owners estimate that they require a 15% rate of return. What is the net present value of the In-Line Blade Company? Should they go forward with the investment
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