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Today ABC Corp. starts a project that requires it to invest in new equipment of $ 8 4 9 , 0 0 0 . Doing

Today ABC Corp. starts a project that requires it to invest in new equipment of $849,000. Doing so will earn ABC pre-tax cash flows of $114,000 annually over 8 years. The equipment has a salvage value of $145,000. ABC's cost of capital is 7.90%, and its tax rate is 25%. The equipment falls into the 20% CCA class (half year rule applies). What is the NPV of the project?
a.-$223,355
b.-$276,871
c.$132,437
d.-$144,434
e.-$130,290

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