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Question 21 Cheapo Airlines is considering the purchase of a new $250,000 maintenance hangar. The new hangar has an estimated usefuiffe of 6 years with

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Question 21 Cheapo Airlines is considering the purchase of a new $250,000 maintenance hangar. The new hangar has an estimated usefuiffe of 6 years with an expected salvage value of $10,000. The new hangar is expected to generate cost savings of $85.000 per year in each of the 6 years A $25,000 increase in working capital will also be needed for this new hangar. The working capital will be released at the end of the 6 years. Cheapo's discount rate is 20% What is the net present value of the new hangar? 544,435 $11,060 $1234,800) $19,435

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