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Sheridan Lumber, Inc., is considering purchasing a new wood saw that costs $ 7 0 , 0 0 0 . The saw will generate revenues
Sheridan Lumber, Inc., is considering purchasing a new wood saw that costs $ The saw will generate revenues of $ per year for five years. The cost of materials and labor needed to generate these revenues will total $ per year, and other cash expenses will be $ per year. The machine is expected to sell for $ at the end of its fiveyear life and will be depreciated on a straightline basis over five years to zero. Sheridan's tax rate is percent, and its opportunity cost of capital is percent.
What is the project's NPVDo not round intermediate calculations. Round final answer to decimal places, eg
NPV $
Should the company purchase the saw?
The company the saw.
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