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Determine the net present value of the replacement

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Toilet Inc. is considering the purchase of a new electric helicopter for $525,000. The firm's old helicopter has a book value of $85,000 but can be sold for $90,000. The new helicopter expected to save $102,000 per year for 7 years after taxes through reduced fuel and maintenance expenses. Toilet Inc's discount rate is 10%, and it exists in a world without Taxes. Determine the Net Present Value of the replacement.

Reference no: EM132681914

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