A private gym is looking at a new set of sports equipment with an Installed cost...
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A private gym is looking at a new set of sports equipment with an Installed cost of $445,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sports equipment can be scrapped for (TIP: "scrapped for" = sold for) $53,000. The sports equipment will save the gym $139,000 per year in pretax operating costs, and the equipment requires an Initial Investment in net working capital of $25,000. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV A private gym is looking at a new set of sports equipment with an Installed cost of $445,000. This cost will be depreciated straight-line to zero over the project's five-year life, at the end of which the sports equipment can be scrapped for (TIP: "scrapped for" = sold for) $53,000. The sports equipment will save the gym $139,000 per year in pretax operating costs, and the equipment requires an Initial Investment in net working capital of $25,000. If the tax rate is 23 percent and the discount rate is 11 percent, what is the NPV of this project? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) NPV
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