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You are planning to invest $600 in new equipment. The equipment will generate cost savings of $600 in year 1 and $800 in year 2.
You are planning to invest $600 in new equipment. The equipment will generate cost savings of $600 in year 1 and $800 in year 2. The salvage value at the end of year 2 is zero. The discount rate (cost of capital) is 25% a year. Compute the net present value (NPV) of this investment.
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