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You are considering investing in a project that increases annual costs by $25,000 per year over the project's 5 year life. The project has an
You are considering investing in a project that increases annual costs by $25,000 per year over the project's 5 year life. The project has an initial cost of $500,000 and will be depreciated straight-line over 5 years. Assume a 22% tax bracket and a discount rate of 11%. Suppose the equipment is sold at the end of year 5 for $300,000, pretax. What is the NPV? O $356,428.12 O $351,892.65 O $455,88734 O $323,497.47 O $317.818.44
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