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Creative Software Corporation is considering a new project whosedata are shown below. The required equipment has a 3-year tax life,after which it will be worthless, and it will be depreciated byMACRS over 3 years. Revenues and other operating costs are expectedto be constant over the project’s 3-year life. The WACC is 8%. Whatis the project’s NPV? Briefly discuss your results.Equipment cost $65,000Sales Revenue each year $60,000OperatingCosts $25,000SalvageValue $15,000TaxRate 35%
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