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Temple Corp. is considering a new project whose data are shownbelow. The equipment that would be used has a 3-year tax life,would be depreciated by the straight-line method over its 3-yearlife, and would have a zero salvage value. No change in netoperating working capital would be required. Revenues and otheroperating costs are expected to be constant over the project's3-year life. What is the project's NPV? Do not round theintermediate calculations and round the final answer to the nearestwhole number.Risk-adjusted WACC10.0%Net investment cost (depreciable basis)$65,000Straight-line depr. rate33.3333%Sales revenues, each year$71,000Annual operating costs (excl. depr.)$25,000Tax rate35.0%
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