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show all work and formulas please! no excel CitaVecchia Corporation is evaluating to purchase of new equipment. The price of the equipment, including shipping and
show all work and formulas please! no excel
CitaVecchia Corporation is evaluating to purchase of new equipment. The price of the equipment, including shipping and installation, is $166,000. The equipment is fully depreciated at the time of purchase. The equipment would be sold after three years for $74,600. The equipment requires a $6,250 increase in net operating working capital. The new equipment would not affect the revenue, but the pretax labor cost would decline by $85,200 per year. The company tax rate is 26 percent, and the WACC is 11.23 percent. What is the NPV of the project? What is the NPV of the project Step by Step Solution
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