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Yummy Pizza Co. is looking to purchase a new woodfire pizza oven that costs $30,000. This new oven will replace their current fully depreciated oven

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Yummy Pizza Co. is looking to purchase a new woodfire pizza oven that costs $30,000. This new oven will replace their current fully depreciated oven that they think they can sell for $2,000. The new oven will allow the company to produce more pizzas which will result in new sales of $10,000 per year with increased costs of $5,000 per year. They expect to be able to sell the pizza oven at the end of 10 years for $3,000 and will be straight lined depreciated over the 10 -year period to zero. Yummy Pizza Co. has a marginal tax rate of 34% and its required rate of return is 12\%. What is the NPV of the project? $1,044 $3,244 $3,634 $2,625 $324

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