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TB Cylinder is considering the purchase of new machines. The total cost of the new machines is $ 8 5 , 0 0 0 .
TB Cylinder is considering the purchase of new machines. The total cost of the new machines is $ The company expects the use of the machines to increase sales by $ each year. The machine belongs to asset class with a CCA rate of and TB Cylinder expects to sell the machines at the end of its year operating life for $ The firm expects that the new machines will require an immediate investment of $ in net working capital and the net working capital will increase by each year in the following years. Suppose TB Cylinders marginal tax rate is and it uses a percent cost of capital to evaluate projects of this nature. What is the NPV of the project?
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