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You are asked to evaluate the following project for a corporation with profitable ongoing operations. The ed investment on January 1 of this year is

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You are asked to evaluate the following project for a corporation with profitable ongoing operations. The ed investment on January 1 of this year is $40,000. The firm will depreciate the investment at a CCA Tale of 20 percent. The firm the 40 percenta bracket The price of the product on January 1 will be $110 per unit. That price will stay constant in real terms. Labour costs will be $100 pet hour on January 1. They will increase at 15 percent per year in real terms. Energy costs will be $600 per plyskal unit on January they will increase at 25 percent per year in real terms. The inflation rate is 3.5 percent. Revenue is received and costs are paid at year end Y2 2ND 100 Physical production, in its Labour input. in hours Energy input, physical units 1.300 180 1,300 150 100 1,300 10 180 The risk-free nominal discount rate is 8.6 percent. The real discount rate for costs and revenues is 5.6 percent. Calculate the NPV of this project. (Do not round intermediate calculations. Round the answer to 2 decimal places. Negative amount should be indicated by a minus sign. Omit $ sign in your response.) Net present value

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