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wildhorse lumber is considering purchasing a new wood saw that costs $40,000. the saw will generate reveneues of $100,000 per year for five years. the

wildhorse lumber is considering purchasing a new wood saw that costs $40,000. the saw will generate reveneues of $100,000 per year for five years. the cost of materials and labor needed to generate these revenues will total $60,000 per year, and other cash expenses will be $10,000 per year. the machine is expected to sell for $3,900 at the end of its five year life and will be depreciated on a straight line basis over five years to zero. wildhorses tax rate is 26% and its opportunity cost of capital is 14.20 percent. what ist he projects NPV and should the company purchase the saw?

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