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Your company is considering buying a new machine to produce your products. This machine costs $10 million (depreciated over 3 years using the following schedule:

Your company is considering buying a new machine to produce your products. This machine costs $10 million (depreciated over 3 years using the following schedule: 45%, 35%, 20%), and will be operated for 6 years total. It will boost your revenue by $1.5 million in year 1, and this will grow by 14% per year. It requires an investment in NWC of $700,000, which will be recovered at the end. You can sell it at the end of the project for $3 million. Your firms tax rate is 27%, and the discount rate for this project is 9%. What is the NPV?

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