Question: A company is considering a project that would require purchasing an asset for $375,000. The project is expected to generate cost savings. Assume the following:

A company is considering a project that would require purchasing an asset for $375,000. The project is expected to generate cost savings. Assume the following: PVCCATS = $90,000; Present Value of Salvage Value = $22,500; Present Value of After-tax Cost Savings = $285,000. What is the project's NPV?

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