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What is the npv of the project

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Beta Electronics is considering the purchase of testing equipment that will cost $633,000 to replace old equipment. Assume the new equipment will generate before-tax savings of $281,000 over the four years. The new equipment will result in additonal depreciation of $56,000 per year. If the cost of capital is 20% and the tax rate is 30%, what is the NPV of the project.

Reference no: EM131318303

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