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Operating cash inflows are $110,000 per year for 7 years (project life). Initial equipment costs are $299,000. The net aftertax salvage value is estimated at
Operating cash inflows are $110,000 per year for 7 years (project life). Initial equipment costs are $299,000. The net aftertax salvage value is estimated at $23,000 and will be received during the last year of the project's life. The tax rate is 21%. What is the net present value of the project if the required rate of return is 11%?
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