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You want to purchase a corporate plane that will eliminate $220,000 in annual expenses for the next 10 years. The purchase price is $6 million

You want to purchase a corporate plane that will eliminate $220,000 in annual expenses for the next 10 years.

The purchase price is $6 million dollar plus annual operating costs of $100,000.

Plane can be depreciated on straight line basis over 10 years.

Thr companys weighted average cost of capital is 8% and its corporate tax rate is 40%.

Does this result in a positive or negative NPV?

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