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Work for a software developing firm

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You work for a software developing firm and the firm is considering canceling all of their operating leases for the printers that are used throughout the firm and replace them with newly acquired printers at a cost of $10.0 million. The expected IRR from this $10 m investment is 8%/year and the firm's WACC is 10%. What do you think is the expected NPV from this investment (positive, negative, zero, or not sure)? Explain!

Reference no: EM132288703

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