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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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    Solution Summary

    This solution provides steps to determine the net present value.