Considering investing in project that increases annual costs

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You are considering investing in a project that increases annual costs by 25,000 per year over the projects 5 year life. The project has an initial cost of 500,000 and will be depreciated straight line over 5 years to a salvage value of 0. Assume a 34% tax bracket and a discount rate of 11%. What is the NPV of this project?

Reference no: EM13939377

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