What is the net present value of undertaking

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Peter's baking factory has just purchased and installed a new switching station with a price tag of $700,000. This station's life span will be 4 years, and will save Peter's baking factory $550,000 per year before tax. After 4 years, this station will have no salvage value. Peter's company has a tax rate of 35% and the packaging machine has a CCA rate of 30%. What is the Net Present Value of this undertaking?

Reference no: EM133207306

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