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Sunland Inc. is contemplating the purchase of an asset costing $45000 which will provide cost savings of $18000 in year 1, $22000 in year
Sunland Inc. is contemplating the purchase of an asset costing $45000 which will provide cost savings of $18000 in year 1, $22000 in year 2 and $20000 in year 3. The asset will have a salvage value of $4500. The company's required rate of return is 10%. The company uses straight-line depreciation. What is the Net Present Value of this project? Present Value PV of an Annuity Year of 1 at 10% of 1 at 10% 1 0.909 0.909 2 0.826 1.736) 3 0.751 2.487 The net present value of this project is $13145. O $653. O $7934. O $9757. S
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