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The service center is expected to increase large equipment sales at the store by 20% over the current level. Assuming that revenues from equipment sales
The service center is expected to increase large equipment sales at the store by 20% over the current level. Assuming that revenues from equipment sales would have been flat (unchanged) for the next five years and that the after-tax operating margin on these sales would remain at the existing level for that period, estimate the effect of this synergy on the NPV of the project.
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