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Rapozo Corporation has provided the following information concerning a capital budgeting project: The expected life of the project and the equipment is 3 years and
Rapozo Corporation has provided the following information concerning a capital budgeting project: The expected life of the project and the equipment is 3 years and the equipment has zero salvage value. The company uses straightline depreciation on all equipment and the depreciation expense on the equipment would be $171,333 per year. Assume cash flows occur at the end of the year except for the initial investments. The company takes income taxes into account in its capital budgeting. The net annual operating cash inflow is the difference between the incremental sales revenue and incremental cash operating expenses. Click here to view to determine the appropriate discount factor(s) using table. Required: Determine the net present value of the project. (Round intermediate calculations and final answer to the nearest dollar amount.)
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