What is the net present value on new press

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Fey Ble Publishing Company is looking into purchasing a new press that will cost $900,000. The company estimates that this new press will increase annual revenues by $1 million, as well as increase annual costs by $650,000. The press will last for 5 years. At the end of the fifth year, the press can be sold for $10,000. Given that the required return is 13%, what is the net present value on this new press? Ignore taxes.

Reference no: EM132540679

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