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Calculate the NPV for the following project. The company wants to determine whether it should expand...

Calculate the NPV for the following project. The company wants to determine whether it should expand and purchase a new piece of equipment (20% CCA Rate). The equipment will cost $100,000, have a useful life of 20 years, and have a projected salvage value of $5,000. By purchasing the equipment, the company can increase its net revenues by $7,500 per year. Using a discount rate of 10% and a tax rate of 30%, should the company purchase the equipment?

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jeff jeffy answered 1 year ago
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