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Your job as a financial analyst is to make projections and evaluations of your firm's business decisions. Your firm is weighing a purchase of new

Your job as a financial analyst is to make projections and evaluations of your firm's business decisions. Your firm is weighing a purchase of new equipment that would save time in the storage of
finished goods and help goods to move quickly through the internal supply chain. The cost of the investment is $45,000. Assuming the purchase has the following attributes, what is the net
present value of the investment? Assume a discount rate of 8 percent.
Determination of Earnings
Earnings before Depreciation and Taxes
Depreciation
Taxable Income
Taxes (20%)
Net Income
Year 1
Year 2 Year 3
Year 2 Year 3
Year 1 Year 2 Year 3
Net Income
Depreciation
Change in Inventory
Cash Flow
a. $23,600
b. $7,692
c. $52,692
d. $5,600
PLEASE DO IN EXCEL
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