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What is the after-tax present value of the annual operating

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Question 1: A project requires a $219,000 investment in equipment. The equipment is expected to worth $128,000 when the project ends in 7 years. Operating savings are expected to be $12,000 in the first year and are expected to increase 5% per year for the life of the project. The CCA rate is 30%, the firm's discount rate is 13%, and the company's tax rate is 22%. What is the after-tax present value of the annual operating savings?

Reference no: EM132494533

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