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Business, 13.07.2020 22:01 dtbrooks4792

The following are the final values to the data: a. The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is received by the project.
b. The expected annual cash revenue of the project will be $30,000.
c. The expected annual cash outflows (expenses/costs) are estimated at being $11,000, excluding depreciation.
d. Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment. The discount rate you are assuming is 6%.
e. After 5 years the equipment will stop working and there will be no salvage value.

Required:
Perform the final NPV calculations and provide a narrative on how you calculated the computations and why (justification of answer).

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