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Business, 18.05.2021 19:20 maddy121209

Your boss is considering a 4-year investment project. If the project is accepted, it would require immediate spending of $580 to buy all necessary production equipment. This equipment would be sold at the end of the project and bring your company an estimated $169 in sale proceeds after taxes (or after-tax salvage value). Your boss's consulting team estimated that the annual after-tax profits (or operating cash flows) would equal $167. The team also recommends immediately setting aside $55 in cash to cover any unforeseen expenses. The required annual rate of return is 8.2%. Calculate the Net Present Value of this proposed investment project.

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