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What is the npv of the proposal

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Reference no: EM131996567

Question - ABC Co. is considering the following investment:

Discount rate 10%

Life of project 5 years

Cost of investment $56,865

Annual savings $15,000

Estimated salvage value $3,000

a. What is the NPV of the proposal?

b. Should the project be accepted? Why?

Reference no: EM131996567

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