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What is the npv if the discount rate

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With a purchase of new equipment for $400,000, ABC Inc. can lower its annual operating costs by $150,000. The equipment will be depreciated straight-line to a zero book value over the project's life of 3 years. At the end of the three years, the equipment will be sold for $30,000. The new equipment will require additional spare parts inventory of $15,000 over the 3 year period. What is the NPV if the discount rate is 15 percent and the tax rate is 21 percent?

Reference no: EM132502754

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