Determine the net present worth of investment

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Your firm is planning to install a new assembly arm for the manufacture of motor vehicle .This assembly arm has an initial cost of $ 750000 and expected to generate net income of $ 225000 per year for the next 4 years. Using MACRS depreciation,$ 55000 salvage, a federal tax rate of 21%, a state tax rate of 5.5% and after tax MARR of 10%. Determine the net present worth of this investment.

Reference no: EM132410780

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