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Suppose a 20-years project requires the following initial investment costs. Building: *Last for 20 years *Initial cost $200,000 1Annual depreciation rate 3.5% Equipment: *Last for

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Suppose a 20-years project requires the following initial investment costs. Building: *Last for 20 years *Initial cost $200,000 1"Annual depreciation rate 3.5% Equipment: *Last for 10 years *Initial cost $1 50.000 *Annual depreciation rate 6% Vehicles: *Last for 5 years *lnitlal cost of $70,000 *Annual depreciation rate 10% Assume the investor is using the straight-line depreciation method. The project earns annual revenue of $65,000 and pays an annual operating cost of $12,000. Assume a 5% discount rate, 25% tax rate, and ignore salvage value of assets. The NW of this project is $ and the lRR of this project is 96. If the discount rate equals the borrowing rate of the fund, using the IRR rule, the investor should (acceptfreject) the project. Please round your answer to two decimals. Do not include any commas ( . ) "S" or "9t" in your answers

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