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You are a financial analyst in charge of capital budgeting for Nine Point Industries. You are evaluating a new machine with a purchase price of

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You are a financial analyst in charge of capital budgeting for Nine Point Industries. You are evaluating a new machine with a purchase price of $260,000. Installation costs would amount to $25,000. An additional $10,000 in net working capital would be required at installation. The machine has a class life of 2 years. The machine would save the firm $200,000 per year in operating costs. The firm is planning to keep the machine in place for 1 year. At the end of the first year, the firm plans to sell the machine for $100,000. The firm has a required rate of return on investment projects of 10% and a marginal tax rate of 21%. What is the NPV of the project? negative $43,250 O negative $16,045 $104.705 O $92.717 O $169,627

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