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SublexCompany, net present value of the proposed investment

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The following data pertain to an investment that is being considered by the management of SublexCompany:

- Discount rate: 10%
- Life of the project: 5 years
- Cost of the investment: $56,865
- Annual cost savings: 15,000
- Estimated salvage value: 3,000

What is the net present value of the proposed investment?

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This solution provides steps to determine the net present value.

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