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ACCOUNTING problem. Please answer in details to get positive ratings.

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You are planning to invest $25,000 in research & development (R&D). This investment will generate cost savings of $17,500 in year 1 and $12,500 in year 2. After 2 years, the salvage value is zero. The cost of capital is 25% a year b) Following a government stimulus program, the cost of capital decreased to 10% a year. Compute the net present value at the new cost of capital NPV-$1300