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Thompson medical devices is evaluating the acquisition of a computer system. The acquisition of this computer system at a cost of $120,000 will result in
Thompson medical devices is evaluating the acquisition of a computer system. The acquisition of this computer system at a cost of $120,000 will result in earnings before depreciation and taxes of $40,000 in years 1 to 3, and $18,000 in years 4 to 6. The company tax rate is 30% and cost of capital is 10% (REMEMBER TO USE TABLES 12-11 AND 12-12) PRESENT YOUR ANSWER ROUNDED TO ZERO DECIMAL PLACES AND DONT USE COMMA SEPARATORS CALCULATE THE NET PRESENT VALUE OF THE PROJECT
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