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    Calculating after-tax salvage value.

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    A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net after-tax salvage value is estimated at $11,000 and will be received during the last year of the project's life. What is the NPV of the project if the required rate of return is 12%?

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    Solution Preview

    A project will produce an operating cash flow of $14,600 a year for 8 years. The initial fixed asset investment in the project will be $48,900. The net aftertax salvage value is estimated at $11,000 and will be received during the last year of the ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the NPV of the project if the required rate of return is 12%.

    $2.19

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