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To calculate the NPV under the accounting strategy, we need to calculate the present value of the cash flows associated with the strategy. The current

To calculate the NPV under the accounting strategy, we need to calculate the present value of the cash flows associated with the strategy. The current cash based EBIT is $200,000 and the cash outflow is $100,000. Assuming a 10% discount rate, the NPV of the accounting strategy is $28,154.99.

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