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Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $152,835 and have an estimated useful life

Thunder Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $152,835 and have an estimated useful life of 6 years. It will be sold for $63,100 at that time. It is expected to increase net annual cash flows by $26,000. The company's borrowing rate is 8%. Its cost of capital is 10%.

What is the Net present value?

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