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The equipment required for a four year project costs $60,000 and belongs in a 20%...

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Accounting

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The equipment required for a four year project costs $60,000 and belongs in a 20% CCA class. It will be sold for $7,000 at the termination of the project. The project generates additional operating income of $20,833. If the firm has a tax rate of 34% and a required return of 10%, what is the NPV? Note: use the PVCCATS formula with the 5k (not the 1.5k ) for purposes of this question. A. $265 B. $1,133 C. $1,839 D. $2,261 E. $2,842

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