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b) Mmasodwo Enterprice is considering investing in a machine to produce computer keyboards. The price of...

b) Mmasodwo Enterprice is considering investing in a machine to produce computer keyboards. The price of the machine will be ¢530,000 and its economic life is five years. The machine will be fully depreciated by the straight-line method. The machine will produce 15,000 keyboards each year. The price of each keyboard will be ¢40 in the first year and will increase by 5 percent per year. The production cost per keyboard will be ¢20 in the first year and will increase by 6 percent per year. The project will have an annual fixed cost of ¢75,000 and require an immediate investment of ¢25,000 in net working capital. The corporate tax rate for the company is 34 percent. If the appropriate discount rate is 15 percent, what is the NPV of the investment?

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