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XYZ, Inc. is considering an investment in equipment of S3,115,000 that is expected to have a useful life of five years and no salvage value.
XYZ, Inc. is considering an investment in equipment of S3,115,000 that is expected to have a useful life of five years and no salvage value. Projected financial information related to the investment for the five-year period is as follows: rYear 5 $4,000,000 $4,100,000 $4,200,000 $4,300,000 $4,400,0 1,881.2501,925,0 YearY Year 2Year 3 Year 4 Sales Variable expenses Fixed expenses: Ads, salaries, & other fixed out-of-pocket costs Depreciation Assume that XYZ, Inc. will use a discount rate of 17%. 1,750,0001,793,7501,83,5 835,000 918,5001,010,3501,111,3851,222,523 623,000 623,000623 623,000 623 1. Complete the following table to calculate the net present value of XYZ, Inc.'s proposed investment. Enter only the result of your calculations in the table cells. Round the "PV of Cash inflows" calculations to the nearest dollar Year "" Year 4 PV of Cash outflows PV of Cash inflows Net present value
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