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A 5-year project requires a $300,000 investment in a machine that is expected to worth...

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Finance

A 5-year project requires a $300,000 investment in a machine that is expected to worth $50,000 when the project ends. Operating expenses are expected to be $75,000 in the first year and are expected to increase 3% per year over the life of the project. The appropriate discount rate is 8%, the companys tax rate is 20%, and the CCA rate is 30%. What amount would you use for salvage value in your NPV calculation?.

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