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Replacing old equipment at an immediate cost of $ 1 2 0 , 0 0 0 and an additional outlay of $ 1 0 ,

Replacing old equipment at an immediate cost of $120,000 and an additional outlay of $10,000 five years from now will
result in savings of $24,000 per year for 9 years. The required rate of return is 12% compounded annually. Compute the n
present value and determine if the investment should be accepted or rejected according to the net present value criterion.
The net present value of the project is $
(Round the final answer to the nearest dollar as needed. Round all intermediate values to six decimal places as needed.)
The proposal should be (1)
(1) accepted.
rejected.
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